Domestic Flight Prices Will Now Get More Expensive And Here’s Why

by Vaishalee Kalvankar
Domestic Flight Prices Will Now Get More Expensive And Here’s Why

Do you frequently travel by domestic flights? Or Are you planning to fly in a domestic flight soon? Here is something you should know. After more than two years, the government will lift the domestic flight price cap as of August 31. Now the airlines will likely have more freedom to choose their own prices thanks to the move. This decision was made after reviewing the state of scheduled domestic operations in relation to passenger demand for air travel. 

Domestic Flight  Price Caps Are Lifted

For domestic airlines there were fixed price caps. According to the price caps, Airlines were now barred from charging a passenger less than 2,900 and more than 8,800 for domestic trips under 40 minutes. The rates a supplier can demand for the supply are constrained by the price caps. After the nationwide lockdown due to coronavirus, the Centre had imposed lower and upper caps on the prices charged by domestic airlines. The domestic air travel reached its full operational capacity in October 2021 but still the limitations stayed. The top caps were put in place to safeguard the passenger from high prices, while the lower restrictions were put in place to help the financially more struggling airlines.

Also Read: Choose This Frequent Flyer Programme For Maximum Benefits In Domestic Travel

No Price Caps, Expensive Domestic Flights

When there are no price caps or more simply put, when there are no limitations on flight prices, it is evident that the prices of domestic flights will increase. However some airlines might lower their price just so that you choose them over other expensive ones. As a result of the situation in Ukraine, prices for aviation turbine fuel (ATF) had already risen to record levels before falling. ATF prices are adjusted twice a month, on the first and sixteenth, to reflect changes in benchmark global oil prices during the previous two weeks. 

Also Read: Delhi, Bangalore & Mumbai Most Popular Among Domestic & International Airbnb Guests