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Last Updated : May 15, 2019 06:43 PM IST | Source: Moneycontrol.com

Domestic airfares to remain high as carriers struggle to plug service gap post Jet's fall

Growth in the number of travellers is also expected to even out to 8-12 percent, due to the steep flight tickets.

Representative image
Representative image

Domestic airfares will continue to be high at least until July 2019, as other carriers fail to plug the gap created by the downfall of Jet Airways, a CARE Ratings report found. Growth in the number of travellers is also expected to even out to 8-12 percent, due to the steep flight tickets, the Financial Express reported.

However, CARE noted in its report that Jet Airways’ crisis also brings good news for others as they will register better margins during FY20. ''We do expect all airlines to report operating profits due to reduced competition during FY20. However, the profitability will highly depend on the prices of crude oil,'' it said.

Of the 766 slots left vacant by Jet, 480 have been re-assigned among IndiGo, SpiceJet and Vistara. Thus fleet expansion by competitors like SpiceJet and focus on increasing international services is expected to bring down airfares on the international route over the next two months, it added.

Among the competition, IndiGo has emerged the clear winner by successfully expanding its market share to 47 percent from around 44 percent.
First Published on May 15, 2019 06:43 pm
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