As Routes Shift,Flight Fares Goon Steep Ascent
Air fares from India to several international destinations have risen sharply in the past month, travel companies said, potentially intensifying worries for travellers especially families looking to head out for the summer holidays.
Airline operating costs are getting impacted by airspace closures due to the Israel-Iran conflict, forcing longer flight detours, and fuel price volatility, the companies said, adding lower seat capacity on certain routes is also weighing on the ticket prices.
Fares could rise further if route diversions and impact on flight frequencies continue, the companies said.
Europe is likely to see the sharpest fare hikes, especially for routes to France, Germany and UK, said Jatinder Paul Singh, global CEO of Viacation, a travel solutions provider.
'From India, airfares to Europe have gone up by 20–35% between March and July based on forward bookings data.'
Longer Diversions | page 11
Singh also noted short-term fare hikes on flights to some destinations in the Middle East. 'In North Asia, Japan and South Korea have also become significantly more expensive to reach,' he said.
A one way, non-stop Air France ticket for Delhi to Paris for July 1 costs about ₹64,000 on a popular travel portal. A one way, non-stop Air India ticket for Mumbai to Japan for the same date costs ₹101, 698 per adult on the same website.
Ongoing geopolitical tensions in West Asia have resulted in temporary airspace restrictions, leading to longer flight durations on certain routes by two to four hours, increasing operational costs of airlines, and prompting 15-20% fare hikes on certain routes, said Bharatt Malik, senior VP, flights and hotel business at Yatra Online, an online travel company.
Last week, Air India diverted or recalled around 16 flights on transatlantic and European routes as Iran closed its airspace after Israel launched an attack targeting its nuclear and military sites. The Iranian airspace currently remains shut to most international flights.
A June 15 advisory by IndiGo, India's largest airline, said due to the airspace curbs, flight routes to and from the Gulf region were experiencing congestion which may cause delays on certain sectors. 'As we continue to operate via alternate paths, extended travel times may be expected,' the airline in a post on X.
In an update on Thursday, Air India announced a temporary reduction in services operated by Boeing 787 and 777 aircraft from June 21 till at least July 15. The suspended routes include Delhi-Nairobi, Amritsar-London, Goa-London, while routes with reduced frequency include Delhi-Washington, Delhi-San Francisco, Delhi-Toronto, and Delhi-Tokyo.
For some carriers, airfares for Dubai and Abu Dhabi are 10-15% higher from a month ago, while those to Japan and South Korea are 5-10% higher, said Abraham Alapatt, president and group head for marketing, service quality, value added services and innovation at travel company Thomas Cook (India).
Industry insiders said the first wave of fare hikes started around late April, when Pakistan closed its airspace to Indian carriers. This affected many flights departing from north Indian cities, with reroutes adding up to three hours on some long-haul journeys.
'Subsequently, in mid-June, airspace closures over Iran, Iraq, and surrounding regions due to escalating conflict in the Middle East compounded the situation,' said Karan Agarwal, director at Cox & Kings. 'The dual impact of these disruptions has led to fare hikes of about 8–12% on Gulf-bound and short-haul international flights, while fares to Europe and North America have risen more sharply, by approximately 30–45% compared to earlier this year. These changes have unfolded gradually over a span of six to eight weeks, and pricing remains dynamic depending on route and carrier capacity,' he added.
Increased flight duration, especially on long-haul routes connecting Europe, the Middle East, and the US, not only disrupts schedules but also raises operational costs like fuel, crew time, and landing charges inevitably pushing fares upwards, said Ravi Gosain, president of the Indian Association of Tour Operators (IATO). 'Compounding this is the surge in crude oil prices, which directly impacts aviation turbine fuel (ATF) costs. For international carriers, ATF can constitute up to 30–40% of operating expenses, making fare adjustments almost unavoidable,' he added.
While airfares are expected to rise further given the surge in oil prices and longer flying times on account of airspace closures, the demand scenario will also have a role to play, said Ajay Prakash, VP, Federation of Associations in Indian Tourism & Hospitality (FAITH).
'Combine that with the comparatively lower airfares that Air India is currently offering on some routes, we could have a very fluid situation and airfares in the same sector could differ significantly from day to day and flight to flight. But there is definitely pressure on airlines to increase fares to compensate for increased operating costs.'
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US and allied forces could detect any Iranian naval preparations beforehand, potentially leading to pre-emptive action. According to Kpler, even limited sabotage attempts would only interrupt flows for 24-48 hours, as US forces could neutralise Iran's conventional naval capabilities within this timeframe. Such actions would result in military consequences and strain diplomatic relations with Oman, compromising Iran's existing communication channels with the US. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
