Airfares on Domestic and International Routes Experience Steady Increase Since March

Airfares for both domestic and international travel routes in India have shown a sequential increase since March 2026, according to an analysis by businessline. Notably, international sectors have experienced a more pronounced rise in prices, attributed to escalating operational costs and robust demand for summer travel. Data from online travel agencies such as ixigo, Cleartrip, and Wego indicates that average booking values (ABVs) for international travel surged from approximately ₹22,700 in February to over ₹32,600 by May. Conversely, domestic ABVs increased more modestly, from around ₹8,800 to ₹9,400 during the same timeframe, highlighting a distinct difference in pricing trends between domestic and international air travel.

This increase in airfare has significant implications for the common citizen, affecting both disposable income and travel choices. For travelers, particularly those opting for international journeys, the hike could deter some from taking trips or push them toward budget options or shorter stays. However, it also reflects a resurgence in travel confidence, with travelers willing to spend more on premium experiences and longer stays, thus potentially benefiting the tourism sector. The rise in domestic airfares, while less dramatic, still represents a noteworthy trend that could impact local travel decisions, particularly for those on tighter budgets.

Looking ahead, the long-term outlook suggests that the government and the Reserve Bank of India (RBI) may need to monitor these trends closely, especially if inflationary pressures on travel continue. With rising operational costs due to fuel and demand dynamics, there may be calls for policy interventions aimed at stabilizing airfare pricing without curtailing growth in the aviation sector. Additionally, enhancing operational efficiencies for airlines and stimulating competition could serve as potential next steps to mitigate the impact of soaring airfares on consumers while fostering a robust travel ecosystem.