Home / Business and Economy / Airlines Warn Delhi: Revoke Fare Caps or We Cut Routes
Airlines Warn Delhi: Revoke Fare Caps or We Cut Routes
20 Mar
Summary
- Airlines group warns of route withdrawals and expansion delays.
- Fare caps imposed in December are causing significant financial pain.
- Rising jet fuel prices exacerbate revenue losses for airlines.
An airline industry group representing major Indian carriers has alerted the government to potential route withdrawals and scaled-back expansion plans if mandated fare caps are not removed. These price controls, initially imposed in December following widespread flight cancellations, have created significant financial strain on airlines.
Carriers are reporting substantial revenue losses and increased operational expenses, exacerbated by a surge in jet fuel prices linked to recent geopolitical events in the Middle East. The Federation of Indian Airlines cautioned that prolonged adherence to the current fare structure could push several operators toward financial unsustainability.
Further compounding these challenges, the airlines are urging the government to withdraw a directive requiring at least 60% of flight seats to be offered without additional charges for seat selection. Industry stakeholders argue this measure could ultimately lead to increased overall fares for passengers.
