Summer getaways get costlier: Airfares up 10-15% on high demand, supply woes
Air travellers planning getaways during the peak summer months of May and June should brace for higher fares, with domestic ticket prices already up by 10-15% compared to last year, according to data from travel portal EaseMyTrip.
Volatile aviation turbine fuel (ATF) prices and supply-side constraints are pushing domestic airfares in India skyward, with average ticket costs between major cities and popular holiday destinations seeing a 10-12% year-on-year increase in June. Domestic airfare in May has increased 10-15% from a year ago.
Rikant Pittie, CEO & co-founder of EaseMyTrip, attributes the increase in ticket prices to supply-side constraints amid grounded aircraft. "This is largely due to aircraft on ground situation and a reduction in flights by key players, creating supply-side constraints. The overall trend remains upward due to operational constraints, grounded planes and rising fuel expenses," Pittie told Mint.
Also read: Rafale brand owner Dassault Aviation share price dips 7% after India-Pakistan ceasefire
To be sure, out of a fleet of 818 commercial aircraft in the country, 133 planes are grounded due to engine and supply-chain concerns. Union minister of state for civil aviation Murlidhar Mohol informed parliament in March that over 680 aircraft were operational in the country.
High-traffic routes such as Delhi–Mumbai, Bengaluru–Delhi, Mumbai–Chennai, Kolkata–Bengaluru and Hyderabad–Mumbai continue to see an increase in airfare, per EaseMyTrip. With strong advance bookings, these routes have recorded an average increase of ₹500-600.
Ixigo, another travel portal, said that cooler domestic destinations like Shimla, Kullu-Manali and Dehradun are seeing a surge in demand. EaseMyTrip has recorded a rise in average airfare between 20% and 30% from metro cities to these cooler holiday spots.
"We're seeing a strong surge in demand for cooler destinations like, Kullu, Dehradun, and Shimla. Flight bookings to these destinations have gone up by 50-100% YoY, this is pushing up ticket prices as passengers are preferring air travel," said Aloke Bajpai, Group CEO, Ixigo.
Also read: Airline stocks Indigo, SpiceJet surge 10% on India-Pakistan ceasefire. Should you buy, sell or hold?
Jyoti Singh Mayal of Travel Agents Association of India (TAAI) expects a strong summer travel season for the industry.
"We are seeing a good demand for both domestic as well as for international destinations. Expect both domestic and international travel to increase 15% YoY this season," said Mayal.
She also said that despite tensions between India and Pakistan, both outbound and inbound travel has not seen any impact. She said, 'Though there was a minor hiccup for 2-3 days due to military operations, the confidence among travellers has not decreased."
Going International
Data by EaseMyTrip and Ixigo suggests that Indians are packing their bags for international destinations mainly across Southeast Asia and Europe. "This year, travellers are showing a growing interest in new destinations like Santorini in Europe and Bora Bora in Oceanic region. Reykjavik in Iceland is also gaining attention, Amsterdam and the Maldives continue to draw visitors," said Pittie
"This summer, we're seeing a strong surge in international travel, especially to Southeast Asian destinations like Thailand, Vietnam, Malaysia, and Bali, which have seen an average 100–120% YoY spike in bookings. Easy visa policies and affordable travel costs are driving this shift towards more budget-friendly international getaways," said Ixigo's Bajpai.
Also read: India-Pakistan Conflict: Was Rafale fighter jet downed during Operation Sindoor? Here's what DGAO said
As per Ixigo, destinations like Malaysia and Thailand have recorded an increase in flight bookings by 226% and 180% respectively. Due to easy visa policies, destinations like Almaty have seen an increase in demand by 77%. Similarly, Vietnam and Bali recorded a bookings surge of 64% and 52%, respectively.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Modi govt secured borders, strengthened economy: Minister Kamlesh Paswan
1 2 Prayagraj: Union minister of State for Rural Development Kamlesh Paswan while addressing media persons in city on Wednesday recounted the achievements of the Modi govt . He said, "India has set on a new journey of development of service, good governance, and poor welfare in the Amrit Kaal of developed India. " He further said that in the last 11 years, Modi govt secured the borders, strengthened the economy and took technology to the masses. Through Operation Sindoor, PM Narendra Modi gave a clear message to the entire world, including Pakistan, that any attack on Indian soil will be considered an act of war. With indigenous technologies like the S-400 missile defence system, Brahmos, Akash missile, INS Vikrant, Tejas, and Prachand attack helicopter, India is now not only emerging as a self-reliant defence power but is also exporting defence equipment. Currently, India's defence exports have increased 34 times to reach Rs 23,622 crores. He said, "Modi govt during crisis has safely evacuated its citizens from every corner of the world, proving that the govt is committed to the safety of Indians not only within the borders but all over the world. Through Operation Ganga during the Russia-Ukraine war, Operation Devi Shakti during the Taliban occupation of Afghanistan, and Vande Bharat Mission during Covid, the Modi govt brought crores of Indians safely from abroad. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo At one time, 96 districts of the country were in the grip of Naxalism, but due to the decisive policy of the Modi govt, stringent action of the security forces, and the strategy of development, the Naxal-affected districts have been reduced to a few. Naxal incidents have reduced by 70%." Currently, India has moved towards becoming the 4th largest economy in the world, and around 49% of global digital transactions take place in India itself. The govt's technology-based e-governance system has given a new definition to transparency, timeliness, and accountability. Global institutions like IMF and UNDP have praised the efforts of the Modi govt towards poverty alleviation in the country, as a result of which about 25 crore people have come out of the PM Jan Dhan Yojana, the general public of the country has been connected to the banking system by opening 55.22 crore bank accounts, he added. Moreover, the success of Chandrayaan-3 in 2024 and now the preparation of Gaganyaan is proof that Modi's new India is moving ahead not only on earth but also in space. Apart from connecting 99% of villages with road connectivity, the railway budget has also been increased 9 times. Moreover, the number of airports doubled in the Modi govt, he further said. Paswan also said that the abolition of Article 370 from J&K, the world-class Kashi Vishwanath corridor, Mahakal project and Ram temple are no longer dreams but realities. The Nari Shakti Vandan Act has given 33% reservation to women in Lok Sabha and Vidhan Sabhas. Over 10 crore women joined 90 lakh self-help groups, and a target of making 3 crore 'Lakhpati Didi' was set. Moreover, women got permanent commission in the army. India has the highest number of women pilots. The number of AIIMS has increased to 23, with 8 new IIMs, 7 new IITs, and 490 new universities established. The govt's Startup India scheme has made India the third largest startup ecosystem in the world. 40.71 crore health insurance cards were issued under Pradhan Mantri Ayushman Bharat Yojana.
Time of India
2 hours ago
- Time of India
US trade pact set for early finish: Piyush Goyal
India and the US are on track to seal a trade agreement before the deadline of fall 2025 set by PM Narendra Modi and President Donald Trump, commerce and industry minister Piyush Goyal told ET in an interview. Goyal, who is on a four-day visit to Switzerland and Sweden, said the rare earth magnet supply squeeze by China is a wakeup call. Edited excerpts: Trade has now acquired a geopolitical dimension. How can India secure its interests? Today, India is sitting on the high table. We have free trade agreements (FTAs) with most developed nations—Japan and Korea, Australia, UAE, the four EFTA (European Free Trade Association) countries. The FTA with the UK has already closed. We are in active dialogue with the US for a bilateral trade agreement, with the European Union for a free trade agreement… with Peru, Chile, and Oman. The entire world recognises India's growing strength. 'Perfect Opportunity' The world recognises the decisive leadership Prime Minister Modi brings to the table and the opportunity of associating with the fastest growing large economy, which is expected to grow from $4 trillion to $5 trillion. It's a perfect opportunity. And, I think, no country would like to miss it. India is in talks for multiple FTAs, some with advanced economies. How is the government preparing Indian industry to ensure that they can take advantage of these agreements? Also, are there policy interventions that are required to help them do so? For the last 11 years of the Modi government, focus has been on ease of doing business, deregulating the economy, making it less difficult to meet regulatory compliances, and decriminalising our laws. He launched Make in India to encourage investments in the manufacturing sector. We have created a framework within the country with strong macroeconomic fundamentals. The government is ensuring that demand in the country remains robust and grows so that investors from around the world feel interested in working in India. I think the perfect foundation has been laid. Now with these free trade agreements, continuity, stability and predictability of policy will be available for our industry in advanced and developed economies, which is important for investment or business. A case in point is the global capability centres (GCCs). During Covid, the nimbleness with which Prime Minister Modi adapted policy to ensure continuity of business earned India the tag of a trusted partner. All the work that people realised could be done working from home can also be done working from India. That's opened up a plethora of opportunities in terms of jobs. Millions of Indians are now working in GCCs. They're earning us billions of dollars of foreign exchange, adding to our construction and real estate ecosystem, providing tertiary jobs. Nearly 2,000 of them are in India today. Where are we on the US trade agreement and is the baseline 10% tariff a sticking point? We don't negotiate through the press. We negotiate on the negotiating table. When can we expect the deal to come through? We (US and India) are both committed to a bilateral trade agreement. Our leaders have set a task of completing the BTA by fall 2025. We are well on track to complete it before that. Supply chains are facing new challenges. The rare earth magnet issue has again brought into focus the issue of secure supply chains. What is India planning to do to ring-fence its industry? It is a wake-up call not just for Indian businesses but for businesses around the world. And this wake-up call will help all supply chains to reassess their resilience and their dependability on certain geographies. This will prompt them to look for trusted partners. For India, while we may have a problem with permanent magnets in the short run, we are already engaged with industry and with our startup ecosystem to find solutions. Even during the course of my stay in Switzerland, we discussed with some companies how they are coming around to address this problem. And I assure you that we are solving this problem. But this wake-up call will help people reassess the resilience of their supply chains and surely attract business to India. IT services exports have helped make up the goods trade deficit. Is AI a threat to our services exports? Certainly, some work and jobs will get impacted by AI. We cannot deny that. But we cannot cry over that, we have to find solutions. We have to adopt AI. We have to learn and retrain our people to be able to engage with AI. We have to leverage AI to our advantage so that instead of the current work that we are doing, we'll probably do even higher value-added work. At the end of the day, I believe the human mind is always supreme, because AI is largely dependent on what you feed into the system. I think there will be a rejig in the way work is done. There will be a need to retrain and reskill our people, but end of the day, I can assure you, India will come out the winner even in this. The budget had announced an export promotion mission. How soon is it likely to be unveiled? We have already worked out the areas which will be the focus of the available resources with the ministry. The effort is to promote new exporters, look at new markets and new products. The budget and the resources will help, particularly our MSME sector, our job generating sectors, our farmers, and to expand in the international markets. (The reporter was in Switzerland and Sweden at the invitation of the commerce and industry ministry)
Mint
2 hours ago
- Mint
Why India's law firms are in a disputes hiring frenzy
Law firms in India are racing to build bigger and sharper disputes teams as business battles grow more tangled and the rules of the game keep shifting. Even within disputes teams, generalists are losing ground as law firms now prefer domain specialists. The shift is driven by a rise in commercial disputes caused by economic uncertainty, new regulations and growing cross-border deals. According to Lee Ignatius, partner and head of private practice search at legal consulting firm Vahura, the disputes practice in Indian law firms has seen a 30% growth in hiring in the past three years, driven largely by a sharp increase at senior levels. 'While tax and IBC (Insolvency and Bankruptcy Code) once led growth, the current surge in complex economic activity and shifting regulatory frameworks has firmly positioned disputes as a key area of law firm expansion," Ignatius said. Nishant Parikh, partner and member of the management committee for law firm Trilegal, said apart from litigation, businesses are also increasingly seeking alternative mechanisms such as arbitration and mediation, 'to resolve disputes while preserving commercial relationships". Also read | So many law graduates, so few top jobs: What's holding them back? Mint has learnt that Trilegal's disputes team has grown by more than 30% year-on-year over the past four years (2021-2025). This month, Trilegal brought in Amit Jajoo and Sushmita Gandhi from CMS IndusLaw as partners under their equity-partnership model. Today, Trilegal's disputes team has 160-plus lawyers and 25 partners. Full-service law firm JSA Advocates & Solicitors, which reported a 39% gross increase in attorney count in its disputes practice team in FY25 compared to FY24, highlighted that one of the main reasons behind the expansion is the uptick in the economy. A full-service law firm handles all types of legal work, from disputes to corporate matters, under one roof. Economy and litigation 'As the economy grows, the number of businesses grows, and businesses will litigate to enforce their legitimate claims," said Amar Gupta, joint managing partner for the law firm, pointing to a large volume of litigation originating from the infrastructure sector. 'Given the government's thrust in this sector, the trend will likely continue." According to a report by the National Legal Services Authority–quoting data from April 2022 to March 2023–India's mediation landscape is growing steadily, with around 460 alternative dispute resolution (ADR) centres nationwide, 425 of which are fully functional. The sector is supported by over 3,950 mediators, 12,640 lawyer-mediators and 8,672 other ADR professionals. Also read | Bar Council notifies rules allowing foreign law firms limited practice in India Mediation settlements rose from 92,446 cases in 2022-23 to 99,033 in 2023-24—a 7.14% increase. Additionally, 48,480 cases were resolved in the first half of 2024, underscoring the increasing preference for mediation. Who else is bulking up Meanwhile, Khaitan & Co. has created dedicated verticals in dispute resolution for international arbitration, construction law, emerging technology, securities, electricity and environment matters. 'As legal disputes become more complex and cross-border in nature, the demand for specialized knowledge and strategic thinking has grown significantly," said Sanjeev Kapoor, senior partner for dispute resolution at Khaitan & Co. 'There is now greater recognition of lawyers with specific domain expertise within dispute resolution." Another full service law firm, Chandhiok & Mahajan, Advocates and Solicitors, which had just five dispute attorneys earlier, now has 20. 'We are seeing an increase in regulatory, tax and licensing actions as well as real estate, mining and infrastructure-related disputes reflecting new laws by the Union and the states, and more stringent enforcement," said Rahul Narayan, partner and head of dispute resolution practice at Chandhiok & Mahajan. Also read | Court battles are defining boundaries for influencers Then, Singhania & Co. doubled its team size from 15 to 30 over the past three years. 'On the legal side, faster court timelines, the push for institutional arbitration and a more streamlined approach by tribunals and regulators have improved trust in the system. It's no longer just about filing a case—it's about getting it resolved efficiently and professionally. That's where good dispute lawyers are really stepping in," said Rohit Jain, managing partner at Singhania & Co. In November 2024, Singhania & Co. hired Vipul Wadhwa as a partner in its dispute resolution practice. He brought along a senior associate and the firm has since added three more associates to the team, including one at a senior level. Law firms, like consulting practices, pluck partners from rivals who then come in with their teams. Typically, the team size along with these partners can be upwards of 10-15 lawyers.
