Three reasons why this may be a good time to book IndiGo and SpiceJet tickets for the summer
- Data showed that the India's airline passenger traffic grew 3.6% in December 2019 but that's not the whole story.
- The fact is, without consider Jet Airways that is grounded now, passenger traffic is up 19%, according to a recent report.
- Despite the rise in traffic, airlines have more unused seats that will keep prices under check.
Data showed that India's airline passenger traffic grew just 3.6% in December 2019 compared to the same time last year. But if the grounded Jet Airways, which is now grounded but was active the same time a year ago, the growth in passenger traffic is nearly 19%, according to an ICICI Securities report earlier this month. However, the net increase in airfares was only 3%.
There are many reasons for that but coronavirus tops the list.
People avoid travel plans that they afford to, especially international travel, and that keeps prices under check. Simultaneously, the cost of fuel has tumbled alongside the sharp fall in crude oil prices recently, again due to the fear of coronavirus outbreak affecting demand.
Further, the two airlines have added more seats than passengers.
|Apri to December 2019|
|Airline||Passenger Growth||Capacity Growth|
|Source: ICICI Securities|
Ticket prices will rise again when crude oil prices bounce back, making jet fuel more expensive, or if there is a surge in demand from travellers taking away the excess seats right now.
So far, the airfares haven't shot up, making now a good time to book tickets for the summer travel.
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