Odisha News, Odisha Latest news, Odisha Daily - OrissaPOST
  • Home
  • Trending
  • State
  • Metro
  • National
  • International
  • Business
  • Feature
  • Entertainment
  • Sports
  • More..
    • Odisha Special
    • Editorial
    • Opinion
    • Careers
    • Sci-Tech
    • Timeout
    • Horoscope
    • Today’s Pic
  • Video
  • Epaper
  • News in Odia
  • Home
  • Trending
  • State
  • Metro
  • National
  • International
  • Business
  • Feature
  • Entertainment
  • Sports
  • More..
    • Odisha Special
    • Editorial
    • Opinion
    • Careers
    • Sci-Tech
    • Timeout
    • Horoscope
    • Today’s Pic
  • Video
  • Epaper
  • News in Odia
No Result
View All Result
OrissaPOST - Odisha Latest news, English Daily -
No Result
View All Result

Summer holiday woes: Air fares set to rise amid Jet crisis

Updated: April 14th, 2019, 14:06 IST
in National
0
"This has definitely resulted in passenger inconvenience. Furthermore, it has resulted in a significant increase in fares. With the industry capacity remaining constrained, the fares are expected to remain high in the near term." (AP photo)

"This has definitely resulted in passenger inconvenience. Furthermore, it has resulted in a significant increase in fares. With the industry capacity remaining constrained, the fares are expected to remain high in the near term." (AP photo)

Share on FacebookShare on TwitterShare on WhatsAppShare on Linkedin

New Delhi/Mumbai: The 2019 summer holiday travel season is expected to be marred by high air fares as debt-ridden Jet Airways gradually truncates flight operations, experts said.

Even though the airline, lenders and the government are still hopeful of a revival, the current trend might see Jet operating a bare minimum fleet, thus bumping up air fares.

Also Read

Sharda University su*cide: Family, students protest against faculty; police resort to lathi-charge

Dental student in Greater Noida university hangs self in hostel room; two teachers arrested

8 hours ago
Pic- PTI

Odisha girl set on fire: BJP witch-hunting Opposition instead of protecting daughters, claims TMC

12 hours ago

“The grounding of aircraft due to liquidity issues with Jet Airways and regulatory directive for the grounding of B737 Max aircraft have resulted in 15 per cent impact on the industry capacity,” said Kinjal Shah, Vice President, Corporate Ratings, ICRA.

“This has definitely resulted in passenger inconvenience. Furthermore, it has resulted in a significant increase in fares. With the industry capacity remaining constrained, the fares are expected to remain high in the near term.”

Jet’s woes assume criticality as the airline which once operated around 120 aircraft is left with just 16 in its fleet. Last Friday it operated 11 aircraft.

The airline has currently suspended international operations till the weekend. It has also cancelled domestic flights, leaving passengers stranded at various airports. This led even the Prime Minister’s Office (PMO) to assess Jet Airways’ financial situation.

“With Jet now cancelling international flights, the rising fare situation is set to get worse if capacity is not increased before peak summer travel season,” said Aloke Bajpai, CEO and Co-founder, ixigo.

“A comparative analysis of April 2019 fares and what the scenario was last year shows that fares for flights originating from Delhi have increased by 19 per cent and fares for flights from Mumbai are up by 36 per cent. Passengers who are planning their summer leisure travel will also be impacted due to availability of seats.”

According to Sharat Dhall, COO (B2C), Yatra.com said: “With the peak travel season having kicked off, we expect airlines to induct more aircrafts to tap into the increased demand on the key business and leisure routes.”

“This will also result in a rationalisation of air fares and we expect them to increase only marginally as compared to the same season last year.”

In addition, Dhall said: “We see other carriers adding capacity on a daily basis to fill the demand-supply gap and that is keeping fares under control.”

“It is only the last-minute fares that are seeing a jump. So it is unlikely to impact the summer vacation travel season as most leisure travellers book well in advance and will not be impacted.”

The trend of high air fares that was triggered due to Jet’s truncation of its operations was amplified by oil marketing companies, as they increased the price of aviation turbine fuel (ATF).

Since March 14, passengers had to shell out high fares as several more flights were cancelled due to grounding of Boeing 737-MAX aircraft.

Culmination of these factors are expected to decelerate the growth of air passenger traffic in the country.

In a recent note, ratings agency Fitch said that Indian aviation market has seen a sharp increase in air fares in the last few months due to tight supply, which has been worsened by the suspension of the 737 MAX aircraft.

“Fitch expects the growth in revenue passenger kilometres (RPK), which decelerated to 12.4 per cent in January (2018: 19.9 per cent), to weaken further until supply increases,” the rating agency said in a note.

In addition, the note said that Jet Airways, which along with its subsidiary JetLite, had the second-largest share of the domestic market until January, has been steadily losing market share as it has been forced to shrink its operating fleet due to financial troubles.

IANS

Tags: Air faresB737 Max aircraftJET AIRWAYSJetLite
ShareTweetSendShare
Suggest A Correction

Enter your email to get our daily news in your inbox.

 

OrissaPOST epaper Sunday POST OrissaPOST epaper

Click Here: Plastic Free Odisha

slide 2 to 4 of 30
#MyPaperBagChallenge

Akriti Negi

December 12, 2019
#MyPaperBagChallenge

D Rama Rao

December 12, 2019
#MyPaperBagChallenge

Faiza Firdous

December 12, 2019
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
#MyPaperBagChallenge

Dibya Ranjan Das

December 12, 2019
#MyPaperBagChallenge

Subhajyoti Mohanty

December 12, 2019
#MyPaperBagChallenge

Sipra Mishra

December 12, 2019
#MyPaperBagChallenge

Amritansh Mishra

December 12, 2019
#MyPaperBagChallenge

Ipsita

December 12, 2019
#MyPaperBagChallenge

Surya Sidhant Rath

December 12, 2019
#MyPaperBagChallenge

Rajashree Manasa Mohanty

December 12, 2019
#MyPaperBagChallenge

Pratik Kumar Ghibela

December 12, 2019
#MyPaperBagChallenge

Sarfraz Ahmad

December 12, 2019
#MyPaperBagChallenge

Sarmistha Nayak

December 12, 2019
#MyPaperBagChallenge

Mandakini Dakua

December 12, 2019
#MyPaperBagChallenge

Jyotshna Mayee Pattnaik

December 12, 2019
#MyPaperBagChallenge

Smitarani Sahoo

December 12, 2019
#MyPaperBagChallenge

Praptimayee Biswal

December 12, 2019
#MyPaperBagChallenge

Matrumangal Jena

December 12, 2019
#MyPaperBagChallenge

Nishikant Rout

December 12, 2019
#MyPaperBagChallenge

Ankita Balabantray

December 12, 2019
#MyPaperBagChallenge

Adrita Bhattacharya

December 12, 2019
#MyPaperBagChallenge

Lopali Pattnaik

December 12, 2019
#MyPaperBagChallenge

Anshuman Sahoo

December 12, 2019
#MyPaperBagChallenge

Sitakanta Mohanty

December 12, 2019
#MyPaperBagChallenge

Geetanjali Patro

December 12, 2019
#MyPaperBagChallenge

Debasis Mohanty

December 12, 2019
#MyPaperBagChallenge

Subhajyoti Mohanty

December 12, 2019
#MyPaperBagChallenge

Tabish Maaz

December 12, 2019
#MyPaperBagChallenge

Pratik Kumar

December 12, 2019
#MyPaperBagChallenge

Keshab Chandra Rout

December 12, 2019
#MyPaperBagChallenge

Akriti Negi

December 12, 2019
#MyPaperBagChallenge

D Rama Rao

December 12, 2019
#MyPaperBagChallenge

Faiza Firdous

December 12, 2019
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
#MyPaperBagChallenge

Dibya Ranjan Das

December 12, 2019

Archives

Select Month

    Editorial

    Indefinite Tenure

    Power of Continuity
    July 19, 2025

    There was a time when “superannuation” meant something. Now it’s just the date you pencil in until the next extension...

    Read more

    Use & Abuse

    Courtesy: Tech Crunch
    July 16, 2025

    Freedom of speech and expression is the soul of democracy and to rob an individual of that fundamental right is...

    Read more

    Trump Targets BRICS

    July 15, 2025

    US President Donald Trump is opening new theatres of his global tariff war. This appears to be a strategy he...

    Read more

    ECI & Aadhaar

    Election Commission of India
    July 14, 2025

    Many of the acts of omission and commission by the Election Commission of India (ECI) in the recent past have...

    Read more
    • Home
    • State
    • Metro
    • National
    • International
    • Business
    • Editorial
    • Opinion
    • Sports
    • About Us
    • Advertise
    • Contact Us
    • Jobs
    Developed By Ratna Technology

    © 2024 All rights Reserved by OrissaPOST

    • News in Odia
    • Orissa POST Epaper
    • Video
    • Home
    • Trending
    • Metro
    • State
    • Odisha Special
    • National
    • International
    • Sports
    • Business
    • Editorial
    • Entertainment
    • Horoscope
    • Careers
    • Feature
    • Today’s Pic
    • Opinion
    • Sci-Tech
    • About Us
    • Contact Us
    • Jobs

    © 2024 All rights Reserved by OrissaPOST

      • News in Odia
      • Orissa POST Epaper
      • Video
      • Home
      • Trending
      • Metro
      • State
      • Odisha Special
      • National
      • International
      • Sports
      • Business
      • Editorial
      • Entertainment
      • Horoscope
      • Careers
      • Feature
      • Today’s Pic
      • Opinion
      • Sci-Tech
      • About Us
      • Contact Us
      • Jobs

      © 2024 All rights Reserved by OrissaPOST