Get ready to pay more air fares for domestic routes from October

MUMBAI: Indian airlines are going to increase airfares in October. According to airlines & travel industry sources, the hike will implement on domestic routes.

The demand is looking good, so load factors are likely to go up in October’ said a senior airline executive. As the festive season kicks off in October, many people travel during the next three months.

On metro routes Airlines are contemplating an increase of 8% to 10%, while ‘exclusive’ routes where not too many airlines fly may see a steeper hike of 12%-15%.

All major airlines including Jet Airways, Kingfisher & Air India are planning to hike prices. Even low cost carriers SpiceJet, IndiGo & GoAir are likely to increase prices.

The industry expecting the load factors to touch 85% to 90% levels in the three months. October will also mark the beginning of the festive season with Dussehra which will be followed by Diwali, Eid ul Azha & Christmas in December. The winter vacation for schools will also fall in December

Asenior executive working with a travel company said, “the low fare seats have been already been sold out for the 1st week of October. Airlines know that this is a good time for them to increase fares.”

Typically July to September is a lean season for airlines, while October to December is a peak season due to festivals & holidays.

Airlines are also cautious not too increase airfares substantially as that would create a stir. Last year airfares had shot up nearly 200% due to strong demand and low supply. Airline regulator Directorate General of Civil Aviation (DGCA) had to intervene after which airfares cooled off a bit.

To avoid any controversy this time around, airlines are keeping DGCA in the loop about the possible airfare hike.