With the aviation sector battling its woes, flyers may continue paying more for air tickets, analysts tracking the aviation sector said. It comes against the backdrop of the airfares rising by remaining on the higher side in the March quarter as against the corresponding period last year. The fares are expected to remain elevated starting the first quarter of the new fiscal, analysts noted.
The increased pricing power of the airlines, on account of sustained robust demand, pushed the airfares upwards from the third quarter of FY19, Kinjal Shah, Vice President, Corporate Sector Ratings, ICRA told Financial Express Online. The capacity constraints due to different issues in the sector led to prices rising further in the last quarter of FY19, she said, adding the surge was steep in routes with higher impact on the capacity.
