Air fares are set to rise after the Air India Group announced it will introduce a ₹400 fuel surcharge on domestic flights, while international passengers will have to pay an additional $10–50 over the existing surcharge amid a surge in aviation fuel prices.


India: Air Tickets Get Costlier as Fuel Cost Spike To Push Airfares Higher

As business and leisure travel has resumed, the worst of the pandemic has passed, countries are once again accessible, and airlines anticipate strong revenue. So why is air fare still so high?

There aren't enough planes, to start with, according to a Bloomberg report.&nbsp;Due to the pandemic's low travel demand, airlines shut down a significant portion of their fleets. The biggest jets have to be prepared for service after being parked away for 100 working hours, so they can't bring them back quickly enough at the moment.

Another factor is that after being denied the chance to travel, in some cases for up to three years, people are willing to pay more for tickets, the Bloomberg report said. More than 25,000 adults who planned to travel in the next 12 to 24 months participated in a Booking.com study, and many said they wished to be "more indulgent" with their travel plans in order to make up for missed opportunities.

“Even if some trips might be a bit more expensive than they were previously, many people still see value in spending on travel,” said Marcos Guerrero, senior director of flights at the online travel company, who spoke to Bloomberg.&nbsp;

<h2>Staff Shortage</h2>

Airlines suffered losses of almost $200 billion due to Covid, which resulted in the loss of tens of millions of aviation jobs. The travel industry is struggling to re-hire enough people, now that a recovery is well underway.

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Delays at airport check-in counters, immigration counters, and baggage carousels have gotten worse as a result of the shortages. They've also made airlines work harder to recruit and keep personnel, which has required paying higher wages. As a result, airlines charge more because they need to cover the extra expenses.

<h2>Rising oil prices</h2>

Although the cost of oil has decreased over the previous year, it is still more expensive than it was in January 2019, which is problematic for airlines because it is their single-highest expense. Numerous carriers, especially low-cost ones, don't hedge their fuel costs, making them susceptible to price increases brought on by situations like Russia's invasion of Ukraine, the Bloomberg report said.

A little over two per cent&nbsp;of the carbon emissions in the world come from airlines, but they lag well behind all other industries in their commitment to a greener future. That's in part because the sole practical option available right now, sustainable aviation fuel, costs up to five times as much as traditional jet fuel.&nbsp;

<h2>Aircraft shortage</h2>

At the height of the pandemic, up to 16,000 aircraft—or almost two-thirds of the commercial fleet worldwide—were grounded. It takes a lot of work to get them back in the air, and every component must be carefully inspected for safety. Many were maintained in the US and Australia's deserts, where they are less prone to deterioration, but they can still experience problems including harmed interiors and engines.

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Obtaining new engines is another hassle. Due to a lack of parts and the difficulty in producing new turbines, airlines including Spirit Airlines Inc. and India's IndiGo have been forced to idle new aircraft. Some newer technology also requires more frequent maintenance because components made of composites, coatings, and peculiar metal alloys wear out more quickly.

“Capacity is a challenge,” Ryanair’s O’Leary said at a Bloomberg conference this month.

“Over the medium term, the inability of Airbus and Boeing to deliver any meaningful increase in production means capacity is going to continue to be challenging for the next two, three, five years,” he said.

&nbsp;

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As business and leisure travel has resumed, the worst of the pandemic has passed, countries are once again accessible, and airlines anticipate strong revenue. So why is air fare still so high?

As business and leisure travel has resumed, the worst of the pandemic has passed, countries are once again accessible, and airlines anticipate strong revenue. So why is air fare still so high? There aren't enough planes, to start with, according to a Bloomberg report. Due to the pandemic's low travel demand, airlines shut down a significant portion of their fleets. The biggest jets have to be prepared for service after being parked away for 100 working hours, so they can't bring them back quickly enough at the moment. Another factor is that after being denied the chance to travel, in some cases for up to three years, people are willing to pay more for tickets, the Bloomberg report said. More than 25,000 adults who planned to travel in the next 12 to 24 months participated in a Booking.com study, and many said they wished to be "more indulgent" with their travel plans in order to make up for missed opportunities. “Even if some trips might be a bit more expensive than they were previously, many people still see value in spending on travel,” said Marcos Guerrero, senior director of flights at the online travel company, who spoke to Bloomberg. Staff Shortage Airlines suffered losses of almost $200 billion due to Covid, which resulted in the loss of tens of millions of aviation jobs. The travel industry is struggling to re-hire enough people, now that a recovery is well underway. ALSO READ | Facebook-owner Meta's shares jump after earnings, lifting US stocks Delays at airport check-in counters, immigration counters, and baggage carousels have gotten worse as a result of the shortages. They've also made airlines work harder to recruit and keep personnel, which has required paying higher wages. As a result, airlines charge more because they need to cover the extra expenses. Rising oil prices Although the cost of oil has decreased over the previous year, it is still more expensive than it was in January 2019, which is problematic for airlines because it is their single-highest expense. Numerous carriers, especially low-cost ones, don't hedge their fuel costs, making them susceptible to price increases brought on by situations like Russia's invasion of Ukraine, the Bloomberg report said. A little over two per cent of the carbon emissions in the world come from airlines, but they lag well behind all other industries in their commitment to a greener future. That's in part because the sole practical option available right now, sustainable aviation fuel, costs up to five times as much as traditional jet fuel. Aircraft shortage At the height of the pandemic, up to 16,000 aircraft—or almost two-thirds of the commercial fleet worldwide—were grounded. It takes a lot of work to get them back in the air, and every component must be carefully inspected for safety. Many were maintained in the US and Australia's deserts, where they are less prone to deterioration, but they can still experience problems including harmed interiors and engines. ALSO READ | China broadening counter-espionage law spooks foreign businesses Obtaining new engines is another hassle. Due to a lack of parts and the difficulty in producing new turbines, airlines including Spirit Airlines Inc. and India's IndiGo have been forced to idle new aircraft. Some newer technology also requires more frequent maintenance because components made of composites, coatings, and peculiar metal alloys wear out more quickly. “Capacity is a challenge,” Ryanair’s O’Leary said at a Bloomberg conference this month. “Over the medium term, the inability of Airbus and Boeing to deliver any meaningful increase in production means capacity is going to continue to be challenging for the next two, three, five years,” he said. WATCH WION LIVE HERE:

What's driving up air fares despite rising demand? Experts have the answer

The partial runway closure and subsequent cancellation of flights at the Delhi airport have led to a sharp rise in last-minute average fares with rates on some key sectors shooting up to 86 per cent amid high weekend travel demand, industry experts claimed Friday.

Delhi International Airport Ltd (DIAL), the private aerodrome operator, had early last month announced closure of one of the three runways for "preventive repairs" for 13 days, starting November 15.

It also told the airlines to tweak their flight schedule accordingly.

On Friday evening, several travel portals showed a sharp rise in spot airfares.

There was an increase in fares from Delhi to Mumbai, Bengaluru, Hyderabad, Kolkata, Chennai and other destinations for the next one week, especially November 16-19.

While the fare for a Delhi-Bengaluru flight on normal days stand around Rs 11,044, for travel on Saturday (November 17), it stood at Rs 13,702 on average, according to the data by travel portal Ixigo.

One travelling to Mumbai from the national capital on Saturday would have to spend Rs 11,060 as against Rs 9,228 on normal days, as per the portal.

The cancellation of flights from the Delhi airport due to the closure of the runway (09/27) has led to an increase in fares for the next one week, said Aloke Bajpai, chief executive and co-founder, Ixigo.

"Another contributing factor is the high travel demand over the upcoming weekend. We have seen an average increase of 86 per cent in air fares for flights from Delhi to key routes such as Mumbai, Bangalore, Hyderabad, Kolkata and Chennai," Bajpai said.

Besides 09/27, the Delhi airport has two more runways -- 11/29 and 10/28 -- which remain operational. The three runways together handle 1,300 flights per day.

Tagged as the busiest airport in the country, the Indira Gandhi International Airport (IGIA) handled 63.5 million passengers in the fiscal ended March 2018.

"The closure of a runway at Delhi for a brief period has disrupted flight schedules and have led to a reduction in the number of flights from the city. This has led to an increase in airfares for the next ten days," said John Nair, head of business Travel, Cox &amp; Kings.

Though spot fares to key destinations such as Delhi- Mumbai, Delhi-Kolkata and Delhi-Bangalore have gone up by 30- 40 per cent, those who booked early grabbed the cheap deals that were available in the market, he added.&nbsp;

The partial runway closure and subsequent cancellation of flights at the Delhi airport have led to a sharp rise in last-minute average fares with rates on some key sectors shooting up to 86 per cent amid high weekend travel demand, industry experts claimed Friday.

The partial runway closure and subsequent cancellation of flights at the Delhi airport have led to a sharp rise in last-minute average fares with rates on some key sectors shooting up to 86 per cent amid high weekend travel demand, industry experts claimed Friday. Delhi International Airport Ltd (DIAL), the private aerodrome operator, had early last month announced closure of one of the three runways for "preventive repairs" for 13 days, starting November 15. It also told the airlines to tweak their flight schedule accordingly. On Friday evening, several travel portals showed a sharp rise in spot airfares. There was an increase in fares from Delhi to Mumbai, Bengaluru, Hyderabad, Kolkata, Chennai and other destinations for the next one week, especially November 16-19. While the fare for a Delhi-Bengaluru flight on normal days stand around Rs 11,044, for travel on Saturday (November 17), it stood at Rs 13,702 on average, according to the data by travel portal Ixigo. One travelling to Mumbai from the national capital on Saturday would have to spend Rs 11,060 as against Rs 9,228 on normal days, as per the portal. The cancellation of flights from the Delhi airport due to the closure of the runway (09/27) has led to an increase in fares for the next one week, said Aloke Bajpai, chief executive and co-founder, Ixigo. "Another contributing factor is the high travel demand over the upcoming weekend. We have seen an average increase of 86 per cent in air fares for flights from Delhi to key routes such as Mumbai, Bangalore, Hyderabad, Kolkata and Chennai," Bajpai said. Besides 09/27, the Delhi airport has two more runways -- 11/29 and 10/28 -- which remain operational. The three runways together handle 1,300 flights per day. Tagged as the busiest airport in the country, the Indira Gandhi International Airport (IGIA) handled 63.5 million passengers in the fiscal ended March 2018. "The closure of a runway at Delhi for a brief period has disrupted flight schedules and have led to a reduction in the number of flights from the city. This has led to an increase in airfares for the next ten days," said John Nair, head of business Travel, Cox & Kings. Though spot fares to key destinations such as Delhi- Mumbai, Delhi-Kolkata and Delhi-Bangalore have gone up by 30- 40 per cent, those who booked early grabbed the cheap deals that were available in the market, he added.

Air fares shoot up by 86% as Delhi runway shuts for repair

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