Flight ticket prices likely to increase as govt hikes cap on air fare

The government today announced an increase in the lower air fare band by 5% for domestic flights. This is the second instance in which the government has increased the fare limits, the first one being in February this year for domestic airlines.

The move by the Union Government is expected to increase the air fares of the flights operating in the domestic sector.

There has been a continuous rise in price of ATF so it has been decided to increase the lower fare band by 5% keeping the upper fare band unchanged. We may open the sector for 100% operations when daily passenger traffic crosses 3.5 lakhs on 3 occasions in a month.