If you’re planning to fly to your favourite destination, then we might be the bearer of bad news. You will be soon charged a whopping 15% more on your air tickets. Yes, air travel will get more expensive. But why is this? What will be its impact on tourism and the hospitality sector? Read on to know more.
Reasons For Increase In Airfare
According to a report by Business Standard, SpiceJet honcho Ajay Singh revealed that airfares will increase by around 16 per cent. This is because prices of Aviation Turbine Fuel (ATF) have been hiked to ₹141,232.87 per kilolitre in Delhi. It’s unfortunately at an all-time high. Apart from the massive hike in ATF, the rupee is also at an all-time low where it crossed ₹78 per US dollar for the first time. This will play a major impact as key cost items for airlines like fuel, lease, and rentals are all billed in US dollars.
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Budget Travellers To Be Impacted Most
Ajay Singh further stated to Business Standard, that domestic flights may be left with little to no choice but to hike airfares from anywhere between 10-15 per cent. On the other hand, flights are also concerned that a price hike in airfares would lead to declining passenger numbers. The airline industry already faced massive losses due to the coronavirus pandemic. These price hikes may not affect well-heeled travellers but this will certainly pose troubles for budget travellers.