Airfares skyrocket as IndiGo crisis deepens

Airfares across the country skyrocketed (in excess of Rs 1 lakh on certain routes) on Friday, following the cancellation of almost 1,000 flights on major domestic routes by India’s largest airline, IndiGo — leaving thousands of passengers stranded and scrambling for alternatives at many airports.

Many passengers were forced to pay steep last-minute prices to travel on competing airlines.
The impact was especially felt on India’s busiest corridors: the Mumbai-Delhi sector — ranked the eighth busiest domestic route globally in 2024 — followed by Delhi-Bengaluru and Mumbai-Bengaluru.

With demand shifting abruptly to other carriers, fares soared. On Friday, tickets were seen priced as high as Rs 1.2 lakh in some sectors. A Delhi-Chennai fare, typically around Rs 10,000, was available in the Rs 40,000-90,000 band. Delhi-Bengaluru tickets were seen between Rs 93,000 and Rs 1,00,000, while even the lowest fares on budget carriers hovered around Rs 35,000. A Delhi-Mumbai ticket was selling at Rs 50,000-60,000.

Industry experts say such price shocks are the natural outcome of supply-demand imbalance. Airlines operate as capacity-based businesses, and ticket prices fluctuate dynamically based on demand, availability, and route load.

“Presently, IndiGo operates flights throughout India, covering most sectors. With its reach and seat availability, it’s able to provide good service at a competitive fare. But when a situation like this arises, it puts passengers in the lurch, and that demand must be borne by other airlines, who would then tend to hike prices,” said Vignesh Kamath, Managing Director of Travel Bird Vacations Pvt Ltd.

Kamath added that the situation is amplified during the festive season. Many of his own customers faced disruptions this week, after IndiGo cancelled flights to holiday destinations. Tickets on alternate carriers, he said, are now about 30% costlier on average.

Another industry expert, requesting anonymity, shared a recent experience: “An IndiGo ticket from Bengaluru to Mumbai had to be cancelled. When we checked later, Air India was pricing seats at Rs 40,000, while SpiceJet and Akasa Air were around
Rs 35,000.”

He explained that a “revenue management system” drives such price movement. “Suppose there’s a plane with 180 seats, all won’t be sold at the same price. It’s like a see-saw. Some seats are initially sold at a loss to meet break-even. After that point, the fares rise sharply. In high-demand situations, the spike becomes extremely visible. It’s all demand and supply.”

He noted that this pricing logic is automated and designed to adjust in real time, adding, “Even if an upper price cap is introduced, the lower cap will start climbing. Discounts won’t function the same way.”

Meanwhile, travel platforms are seeing a surge in support requests. A spokesperson for EaseMyTrip said: “We are witnessing a higher-than-usual inflow of customer queries and uptick in prices due to increased demand. We have strengthened our 24/7 customer support to offer timely assistance, real-time updates, and clear communication. Our priority is to minimise inconvenience and ensure every traveller receives the highest level of service.”