The prices of airfares, aviation tribune fuel, and crude prices are soaring as high as our flights. Passengers who plan a fortnight to a month before might also witness a sudden rise in prices for flights from Ahmedabad to different destinations. Round trip destinations from Ahmedabad to most cities cost around ₹10k.
On Thursday, the oil marketing companies raised the ATF prices by 16.3%, the most vertical margin ever seen in a single go. Afterward, the airlines raised concerns about the upsurge in prices and referred to them as non-sustainable. However, the booking won’t contain uncontrolled airfares.
Due to the retrieval of the pandemic, travel across cities is growing. However, upsurging airfares spurred by a rise in crude oil might hinder travel plans and budgets. Moreover, the airlines want to avail of the input tax credit by bringing the ATF under the GST purview.
Airlines Concerned About Diwali Season
The global pandemic restrictions affected the tourism and aviation industry to its core. Virendra Shah, President of the Travel Agents’ Association of India (TAAI), said, “As demand for ATF remains upbeat, the rising prices have also affected the airfares.” According to him, the business segment is a significant contributor to the demand for travel. The overall market remains constant after the end of the leisure travel season.
He added, “However, monsoon and inflation affect the prices. We hope that increase in ATF prices and consequential rise in airfares do not impact the vacation business.” Airlines are also concerned about the long-weekend getaways in August. Industry experts have predicted that inflation and ATF cost rise will make the holidays in the Diwali season more expensive.
According to a city-based travel agent, Diwali is the peak travel season as winters are generally bright for travel. However, if airfares or hotel rates touch skies, vacations may get pricier. As a result, demand may change due to inflation and recession.
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