MUMBAI: Airlines are unlikely to continue with the current high fare levels and fares are expected to moderate significantly in the coming months, according to aviation consultancy firm, Centre for Asia Pacific Aviation (CAPA).
In its outlook for FY 2023, CAPA said that the impact of higher fares on demand has become visible in the past three months with traffic recovery slowing down.
“Domestic traffic is expected to reach 130-140 million passengers, perhaps remaining slightly lower than the FY2020 levels. International traffic is expected to reach 55-60 million passengers, around 20 % below pre-Covid,” said CAPA report.
Currently, fares are regulated by the government with lower and upper fare caps, applicable for travel 15 days out. The fare caps were introduced in May 2020 when domestic air travel restarted after a two month Covid-led lockdown.