With price cap gone, will India’s airlines hike domestic fares in September?

With price cap gone, will India’s airlines hike domestic fares in September?

Dubai: Airfares on India’s domestic routes could rise sharply from September with the government removing fare caps imposed in 2020. The decision, which will come into effect on August 31, is expected to bring relief to airlines including IndiGo, SpiceJet, Air India, and Vistara, especially since record high fuel prices have been eroding margins. “The fare cap, being removed just before the start of the festive season, will see the market determine what domestic ticket rates should be,” said Ashwini Phadnis, an aviation analyst. “For example, with Durga Puja coming up, fares to and from West Bengal will see a spike – but this is unlikely to be true of all domestic sectors operated by the airlines.” Flights from Delhi to Kolkata cost around Dh227 right now, but seen hitting Dh350 in the first week of October. A one-way ticket from Delhi-Mumbai will, however, remain at around Dh180-Dh200 in September and October, as per current indicative rates. Flying from Delhi to Kochi costs Dh200-Dh250, but are seen as dropping to around Dh170 in the first week of September, before rising to Dh200 in October. “The high price of oil may restrict airlines from offering vastly discounted fares as they did