Prices of domestic flights to certain destinations are likely to spike during the high-demand summer seasons with fewer airlines to service holidaying families and other travellers.
Airlines are set to operate fewer domestic flights during the upcoming summer season of 2023 compared to last year, due to high oil prices and limited terminal capacity at airports, according to the Directorate General of Civil Aviation (DGCA).
The regulator has approved 22,907 weekly flights across airlines in the upcoming summer schedule, marking a decrease of 9.5% from last year’s 25,309 weekly flights. However, this number is still a 4.4% increase from the 21,941 weekly flights airlines were operating in the winter schedule, according to an Economic Times report.
IndiGo, the market leader, plans to increase capacity and will operate 11,465 flights this summer compared to 10,085 flights in the winter, marking a growth of approximately 14%. Meanwhile, financially troubled SpiceJet has received approval to operate 2,240 flights during the summer schedule, a decline of 30% from the winter schedule. Despite a debt-equity restructuring with lessor Carlyle Aviation, the airline has been unable to induct fresh capacity and continues to return aircraft to the lessor due to pending dues.
Air India, on the other hand, is expected to induct significant fresh capacity in June and will operate 2,178 flights this summer, 9.45% higher than the ongoing winter schedule.
The impact on ticket prices of fewer summer flights this year remains to be seen, although fliers at certain locations are already witnessing a sharp spike in flight ticket prices.
The development is also significant in the background of recent reports that long cues and general disorder have returned to all major airports. In November-December last year, passengers had to wait 2-3 hours just to get inside the airport to board their flights. The situation was resolved after the Ministry of Civil Aviation took a number of steps like increasing the number of entry gates.
The DGCA’s latest data provides valuable insights into the performance of the domestic aviation industry, highlighting individual airlines’ strategies amid challenging market conditions. With the summer season fast approaching, airlines will need to balance capacity and demand while navigating external factors such as fuel prices and airport capacity constraints to remain profitable and competitive in the industry.
