A sustained rise in domestic airfares has left regular travellers and aspiring flyers struggling to keep up, even as India’s airport network and route connectivity have expanded rapidly under schemes such as UDAN. Industry studies and traveller accounts show fares climbing by roughly 40–50 per cent on many routes since 2019, driven by higher aviation turbine fuel (ATF) costs, shrinking competition, taxes and airlines’ efforts to recover pandemic losses.
Passengers such as Salman Shahid, who frequently travels between Srinagar and New Delhi for work, say previously affordable tickets have become prohibitively expensive. Where a one-way fare once cost around ₹3,300 before the pandemic, equivalent journeys now routinely exceed ₹5,000. For many, air travel that was once an occasional convenience is slipping out of reach.
Rising fuel and operating costs push fares higher
A major factor behind the price increases is ATF. Prices of jet fuel in major Indian cities have climbed steeply since 2019, with a reported rise of around 38 per cent in key markets. ATF now commands a much larger share of airline costs, and unlike in a few global hubs, Indian consumers bear high statutory levies on fuel. Industry bodies estimate that taxes, cesses and levies on aviation make India one of the most expensive markets in Asia for ATF, adding substantially to ticket prices.
Airlines have also been recovering losses incurred during the pandemic. Fleet restructuring, increased borrowing costs, and maintenance or leasing disruptions have raised per-seat costs for carriers. In some cases, reduced on-time performance and aircraft groundings have further constrained capacity, tightening supply and enabling higher fares on busy routes.
Market consolidation and weaker competition
Competition in the domestic market has weakened following the exit or severe downsizing of several carriers. The collapse of Go First and earlier retrenchment of Jet Airways, along with prolonged troubles at carriers such as SpiceJet, have reduced seat supply and concentrated market share. The consolidation of Tata Group carriers—Air India, Vistara (merged) and AirAsia India—together with IndiGo’s dominant position, means two players now control a large share of domestic traffic. Analysts warn such concentration can diminish price competition and facilitate fare hikes during peak demand or disruptions.
Taxation and surcharges compound the burden
Beyond fuel and market dynamics, passengers face a patchwork of fees that cumulatively raise ticket costs. Airport development fees, passenger service charges, aviation security and terminal fees, plus state-level VAT on ATF in many jurisdictions, add to the headline fare. Industry groups and trade bodies have repeatedly flagged the complexity and scale of aviation taxes in India, arguing they weaken affordability and competitiveness.
Demand patterns mask distributional exclusion
Aggregate passenger numbers have recovered and even exceeded pre-pandemic levels, supported by more routes and growth in leisure and business travel among higher-income groups. Yet observers caution this masks growing exclusion: price rises have reduced access for lower and lower-middle income segments—the very cohort UDAN was intended to open up to flying. Airports Council International data indicate India recorded a substantial rise in average domestic fares in the first half of 2024 versus 2019, reflecting both stronger demand and constrained supply on some routes.
Calls for policy and regulatory responses
Aviation stakeholders and consumer advocates are urging a combination of measures to restore affordability. Proposed steps include reducing or rationalising fuel-related taxes, encouraging fresh market entry to boost competition, and restoring a public stake or regulatory levers to curb extreme price spikes during crises. There are also calls for targeted subsidies or concessions for students and economically vulnerable travellers, and for more transparent fare disclosure by carriers.
Meanwhile, regulators have at times intervened during crisis episodes to nudge down fares or ask carriers to justify extreme price increases, but sustained solutions will require structural adjustments. Experts argue that a balance must be struck between ensuring airlines’ financial viability and preserving air travel as an accessible mode of transport for a broad cross-section of citizens.
What travellers can expect in the near term
Industry forecasts suggest fares may remain elevated through the winter peak and into early 2026, with some moderation possible by January as fuel costs stabilise and seasonal demand eases. Analysts also expect incremental capacity additions as grounded aircraft return and new leasing arrangements take effect. However, unless taxes are addressed and competition strengthened, many observers say air travel will continue to skew towards time-sensitive, higher-income travellers rather than becoming a mass transport option.
For frequent flyers like Salman Shahid, the net effect is pragmatic: fewer trips, altered schedules and tighter budgets. For policymakers, the challenge is clear — translate expanded connectivity into genuinely affordable access, so that the original promise of schemes such as UDAN reaches the broader population the policy once envisioned.