Average air ticket prices in India increased by 9 percent in the first quarter of 2024, reported PTI citing FCM Travell, an Australian Securities Exchange-listed company. The rise in fares is mainly due to higher travel demand and stronger economic growth, according to FCM Travel, an Australian Securities Exchange-listed company.
FCM Travel also reported a 20 percent rise in premium class bookings from January to March compared to the same period last year. This increase was driven by sectors such as manufacturing, IT, and large business conglomerates.
According to PTI, Sunny Sodhi, Managing Director of FCM Travel India, stated, “Domestic air capacity has increased more than 3 per cent but due to the demand in travel, we have seen average ticket prices increase by 9 per cent which is attributed to a much stronger economic growth and a general increase in demand for travel”
He highlighted that popular domestic business travel routes include Delhi to Mumbai, Mumbai to Delhi, and Bengaluru to Mumbai. Sodhi also noted that India is soon expected to become the 7th largest business travel market globally, and the aviation boom in the country is supporting business travel growth. Business travelers are now more willing to pay extra for premium experiences.
He added that international air capacity has increased by 14 percent due to India’s expanding aviation sector. Additionally, average international airfares have decreased by 15 percent, reflecting a global trend of decreasing airfare yields.