Airfares in India have witnessed a significant increase, particularly during this year’s summer travel season with Go First out of the picture. Factors such as rising demand and capacity constraints, as well as the insolvency of Go First have contributed to the soaring ticket prices.
Fallout from Go First’s insolvency
Go First, an airline operating under the Wadia group, declared insolvency in May, causing a sudden reduction in capacity. This further strained the already affected market leaders IndiGo and SpiceJet, who had already faced capacity constraints due to fleet grounding. Despite high airfares, the demand for air travel surged, with May witnessing a significant increase in domestic flyers compared to the pre-pandemic period.
