Domestic airlines reducing their flights has led to a significant increase in airfares between October and Decem-ber 2011 as compared to the same period in 2010, according to a global travel report released on Thursday.
The report by American Express Global Business Travel, a travel agency, says airfares in India during the last three months of 2011 increased by 18% over the same period in 2010. The increase is significant as the rest of Asia-Pacific region witnessed only a 4% fare hike for the same period.
narrowing supply and high inflation rates have increased fares across all classes,” said Sandeep Shastri, vice president and general manager, Global Business Travel, India. “Low-cost carriers have also increased fares significantly owing to supply variance and economic pressures.”
Airfares between Indian cities to busy destinations in the Asia Pacific region also increased by a marginal 2%.