TravelPrice of Jet Fuel decreased by 12%, are airlines going to reduce...

Price of Jet Fuel decreased by 12%, are airlines going to reduce the prices of tickets?

The country's largest airline IndiGo has introduced 'Sweet 16' offer. Airlines have announced this offer for all domestic routes. Under this, customers can book tickets at an initial price of Rs 1,616.

Must Read

Oil marketing companies reduced the price of jet fuel (ATF) by up to 12 per cent on August 1. After the fall in the prices of crude in the international market, he announced to reduce the prices. Just a day after this, the country’s largest airline IndiGo introduced the ‘Sweet 16’ offer. Airlines have announced this offer for all domestic routes.

This offer of IndiGo is from 3 to 5 August. Under this, customers can book tickets at an initial price of Rs 1,616. This ticket will be for travel between August 18, 2022 to July 16, 2023. Earlier IndiGo had introduced this scheme under the name ‘Let’s Sale with IndiGo’. This scheme ended on July 31.

Launched in the last week of July, under this scheme, tickets could be booked from an initial price of Rs 1,499. It is expected that in the coming days other airlines companies can also offer offers like Indigo. After IndiGo launched the scheme last month, other airlines also launched their own schemes.

SpiceJet had launched ‘Season Sale’. In this, the starting price of the ticket was Rs 1,498. GoFirst launched ‘Rock Bottom Sale’. In this, the starting price of the ticket was kept at Rs 1,799. AirAsia introduced a scheme called ‘Pay Day Sale’. In this, the starting price of the ticket was Rs 1,499.

The question is, is air travel going to be cheaper in the coming days? According to experts, the ticket prices of airline companies are not going to go to the level before the corona epidemic. This is because fuel prices are still high. Besides, the depreciation of the rupee against the dollar and weak financial position of airlines are the main obstacles in the way of reduction in ticket prices.

IndiGo’s June quarter revenue reached a record Rs 12,855.2 crore. But its loss was Rs 1,064.26 crore. A senior official of GoFirst airline told Media on the condition of anonymity, “Fuel prices have shown a moderation. But it is still higher than the level before the corona pandemic. Until there is a further fall in fuel prices. Till then, the ticket prices are not going to come down much.”

A senior executive of another airline company said market leader IndiGo has the power to fix the prices of tickets as long as fuel prices remain high. If it does not use this power, its market share may decrease.

On the other hand, Akasa Air has offered cheaper tickets than IndiGo on its initial routes. This new company of the airlines industry is selling MumbaiAhmedabad ticket in August for just Rs 3000. This is the lowest ticket price on this route. Akash Air’s capacity is too small to impact IndiGo’s pricing power.

Jet Airways, which is going to start services from next month, will not have the power to exert much influence on airline ticket prices. Experts say that IndiGo is launching the offer because it wants its load-factor to not drop much during July-September. It is considered a weak season for air travel in India.

Related Stories

Trending Now