Airfares In India Down 38% Since 2011, Now Compete With Train Fares: IATA Report

Airfares In India Down 38% Since 2011, Now Compete With Train Fares: IATA Report | File Image

The average airfares paid by Indian travellers for domestic and international travels have become 21% and 38% cheaper respectively than its 2011 levels, revealed the ‘Aviation In India’ report by the International Air Transport Association (IATA). The report also revealed that domestic airfares in India are giving a tough competition to the train fares.

IATA inaugurated its 81st annual general meeting (AGM) in New Delhi’s Bharat Mandapam on Sunday. The event, which has been hosted in India after 42 years, saw the release of the ‘Aviation in India’ report themed on ‘sustaining and growing a dynamic air transport market’. The report highlighted that aviation sector provides 7.7 million jobs and contributes USD53.6 billion to the country’s GDP, amounting to 1.5% of the total GDP.

The report highlighted that since 2011, the real average airfare, which is the airfare after adjusting inflation, paid by Indian travelers for domestic and international flights, has decreased substantially. Compared to 2011, domestic and international airfares are around 79% and 62% of their 2011 levels, which amount to a decrease of 21% and 38% respectively. It stated that while the pandemic temporarily disrupted the downward trend, particularly for international travel, real airfares are declining again. 

Over the past decade, the combined market share of the top 10 airlines has increased from 60.7% in 2014 to 90.9% in 2024. It stated that consolidations, like the AIX Connect’s into Air India Express and Vistara’s merger into Air India, can enhance the competitiveness and health of the air transport industry, ensuring financially sustainable operations and benefiting passengers through improved services and competitive fares.

 While the domestic airfares have become more affordable, the report also highlighted that they have been giving a tough competition to train fares in 2024. According to IATA, while the fare for a first-class train journey from Mumbai to Kolkata costed Rs6,000, the average fare for flights were Rs6,380, while also bringing down the travel time from average 32hr to 2hr40min. Notably, the average airfare from Delhi to Chennai costing Rs6,550 was cheaper than the first-class train travel costing Rs7,150.

Amitabh Khosla, IATA’s country director for India, Nepal and Bhutan, said, “Being the third largest in global aviation and the sixth largest in air cargo, India seems to be an exciting aviation market. Indian consumers have greatly benefited from competition as the average airfares have gone down.”

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