Soaring airfares clip Indian travelers summer plans, situation expected to improve soon
Besides rising airfares, the weakening of rupee also added to Indian travellers' woes. As overseas travel has to be paid in dollars or euros, they must shell out more money
The onset of summer starting late April and May normally sees a surge in the number of Indians heading abroad on holidays. But hostilities in the Middle East disrupted regular international flights out of India and the soaring price of aviation turbine fuel (ATF) is having a negative impact on their travel plans this year.
Last year was a record for the country, with almost 33 million Indians travelling around the globe. But the war in the Gulf has resulted in soaring ATF costs, resulting in many airlines sharply cutting flights and hiking fares.
Besides rising airfares, a weakening rupee has also added to Indian travellers' woes. As most of the costs during overseas travel has to be paid in dollars or euros, those going on holidays abroad are shelling out more at every stage – from booking flights and hotel rooms, paying for visas and shopping abroad.
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India is not alone; Europe is also one of the worst-hit by the crisis, as the International Energy Agency (IEA) said it could run out of jet fuel in a matter of weeks.
International carriers have taken drastic steps. Lufthansa, for instance, is cancelling around 20,000 short-haul flights during summer as many sectors have become unprofitable due to the jet fuel increase. Others, including KLM-France and Delta, have also cut some flights or jacked up fares.
"The Strait of Hormuz blockade will result in the largest energy crisis we have ever faced," Fatih Birol, the executive director of the IEA, told the media. As Europe is near its peak demand season, the loss of supplies from the Middle East poses a severe logical challenge.
Earlier this month, the Indian government directed oil marketing companies to implement only a partial and staggered increase in domestic airfares because of the jet fuel crisis, instead of passing the entire burden on passengers. But airlines operating on international routes (including Air India, IndiGo and Akasa Air) will bear the full increase, resulting in a steep hike in fares.
Considering the massive hike in airfares, Indian travellers are now heading to destinations in Southeast Asia and Australia-New Zealand. "Many Indians are now booking tickets for Malaysia, Singapore, Vietnam and Australia," Riza Fathima, the joint convenor of the Tour Operators Association of India (TOAI) told Khaleej Times.
"Airfares and other costs have also gone up for these destinations, but despite this many Indians are going ahead with their summer holidays," she added.
Fathima said travel to the Gulf has fallen sharply after the start of the war. A large number of Indians visit the region even during the summer months, but the ongoing war has seen a 30 to 40 per cent fall this year, she revealed.
Business travellers, however, continue to fly to Dubai and other cities in the Gulf, and Fathma is confident the situation will improve over the coming weeks.
Air India has introduced region-based charges for tickets covering South Asia, Middle East, South East Asia, Australia, Europe and North America. IndiGo has a flat fuel surcharge based on the sector, and Akasa Air is applying a variable fuel surcharge.
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