The government has stated that airfares in 2024 have moderated compared to the previous year, with noticeable price reductions observed on several routes during festival seasons.
In response to concerns about high airfares, Minister of State for Civil Aviation Murlidhar Mohol clarified in the Rajya Sabha that airfares are not regulated by the government, as airlines have the flexibility to set prices based on their operational needs, within the framework of existing rules.
‘Govt refrains from regulating airfares’
Mohol emphasised that the government generally refrains from regulating ticket prices to maintain market competitiveness but intervenes when necessary to ensure reasonable pricing and safeguard passenger welfare.
“…the government generally refrains from regulating airfares to maintain market competitiveness, however, it remains vigilant, and the government intervenes to shift capacity from one sector to another to prevent exorbitant pricing to ensure passenger comfort and welfare,” Mohol said.
Airfare fluctuations linked to market forces
Mohol explained that airfares are dynamic, influenced by the laws of supply and demand. However, he pointed out that in 2024, fares have moderated relative to 2023, with airlines encouraged to maintain reasonable pricing, particularly during high-demand periods such as festivals.
The minister also highlighted that airfare trends in India are affected by multiple factors, including seasonal variations, fuel prices, aircraft capacity, route competition, and events like holidays and long weekends.
“The airlines have also been sensitised to ensure reasonability while fixing the airfares and to keep passengers’ interest in mind. Notably, during festival seasons, a decrease in airfares was observed in various sectors,” he added.
Additionally, operational constraints at airports contribute to fare fluctuations, as limited capacity and high demand can drive prices higher.
“Given the complex dynamics of the Indian aviation industry, government is playing the role of a facilitator by way of creating enabling environment to support the growth of the sector,” Mohol said.