Removal of airfare caps will help in offering discounted tickets: IndiGo
The country's largest carrier IndiGo on Wednesday said the removal of airfare caps will help airlines to increase their passenger load factors by offering discounted fares.
With the government doing away with the airfare limits after more than two years, travel agents are also optimistic that ticket prices are likely to go down in the coming months, especially due to the upcoming festival season.
The country's second-largest airline Vistara said it will continue to have a balanced pricing strategy.
The upper and lower limits on airfares on the basis of flight duration were put in place back in May 2020 after the resumption of scheduled domestic air services. Scheduled domestic flights were suspended for two months starting from late March 2020 in the wake of the coronavirus pandemic.
On August 10, the civil aviation ministry announced that airfare caps will be removed from August 31 amid the domestic air traffic being on the recovery path as well as a relative decline in jet fuel .