Flight cancellations drive fares north

MUMBAI: Airfares are surging as two of India’s biggest carriers have been forced to cancel up to 150 flights daily. Jet AirwaysNSE -0.98 %, struggling to remain afloat, has been cancelling about 100 flights a day to conserve finances and cope with planes being grounded because lease payments haven’t been made. The country’s largest carrier IndiGoNSE 1.68 % finds itself short of pilots to fly its swelling fleet.

Fares have climbed as much as 60%, especially to destinations such as Chennai and Kolkata and some smaller towns, said three people with knowledge of the matter.

“The overall fare table in the domestic market has increased significantly over the past few weeks with last-minute fares on key routes being the most impacted,” said Sharat Dhall, chief operating officer, B2C, at Yatra.com.