India Airfares Soar Why Flying Is Becoming Unaffordable

India Airfares are skyrocketing, making flying unaffordable for millions. Explore how high taxes, airline monopolies, and rising fuel costs are pricing out everyday travelers.

India once promised that air travel would be accessible to all, but soaring ticket prices and shrinking competition are making flying a luxury few can afford. Experts warn that unless structural changes are made, millions of Indians could remain grounded.

Rising Airfares Hit Everyday Travelers Hard

Salman Shahid, a frequent traveler between Srinagar and New Delhi, feels the pinch of surging airfares. As the owner of a coaching center for aspiring IIT students, frequent flights were once essential for balancing work and family commitments.

“Before COVID-19, a one-way ticket from Srinagar to New Delhi cost about 3,300 rupees ($37). Now, it’s over 5,000 rupees ($56),” he shares. The 50% increase has cut his monthly trips in half, limiting both business and personal travel.

This scenario is far from unique. According to Airports Council International (ACI), India saw domestic airfares rise by 43% between 2019 and the first half of 2024—the second-highest increase in Asia-Pacific and West Asia regions. International fares increased by 16% during the same period. Factors include rising fuel costs, reduced competition, and airlines attempting to recoup pandemic-era losses.

The Promise of UDAN: Affordable Flying for All

In 2016, Prime Minister Narendra Modi launched the UDAN (Ude Desh ka Aam Nagrik) initiative, aimed at connecting smaller towns and making air travel affordable for ordinary Indians. Modi famously said he wanted people “who wear flip-flops” to fly in airplanes.

While India has doubled the number of operational airports from 74 in 2014 to 157 in 2024, soaring ticket prices have turned this dream into a hollow promise. Vandana Singh, chairperson of the Aviation Cargo Federation of India, warns, “Airfares keep rising, leaving middle and lower-income travelers out of the skies.”

Even as more routes open, flight accessibility for the general population is shrinking, with rising costs effectively excluding the very people UDAN intended to serve.

Market Consolidation Drives Prices Up

Competition in India’s aviation sector has sharply declined. Several airlines, including Go First and Jet Airways, ceased operations, while others merged. Air India, Vistara, and AirAsia India are now under the Tata Group, giving just two private players—IndiGo and Air India—a combined 91% market share.

This consolidation has created a near-monopoly, allowing dominant airlines to raise fares dramatically during peak seasons or emergencies. For instance, after the tragic Pahalgam attack in April 2025, ticket prices from Srinagar surged from 5,000 rupees ($56) to nearly 12,000 rupees ($135) in a matter of days.

Economists argue that had the government retained partial control of Air India, it could have regulated fares, preventing price exploitation in a sector where air travel is still considered a luxury.

Taxes and Fees Exacerbate the Burden

India imposes some of the highest aviation taxes in Asia, making up nearly 45% of ticket prices. High fuel taxes, passenger fees, security surcharges, and airport development charges all contribute to the escalating cost.

Amjad Ali, a travel agent in New Delhi, notes that flights from cities like Mumbai to Delhi have increased from 3,800 rupees ($43) pre-pandemic to over 6,000 rupees ($68) today. Airlines are also reducing discounts previously available to students and other groups, further limiting access.

Who Still Benefits?

Despite rising prices, air travel numbers have remained high because wealthier, time-sensitive travelers continue to fly frequently. Aviation economist Rohit Kumar explains, “New airports and higher-income professionals keep passenger numbers up, even though middle and lower-income Indians are being priced out.”

The result is an unequal aviation landscape where a small affluent section carries the industry, while millions of emerging flyers—the intended beneficiaries of UDAN—remain grounded.

The Road Ahead: Making Flying Truly Affordable

Experts say reversing this trend requires coordinated efforts between the government and airlines:

• Lower aviation taxes: Reducing fuel and ticket levies would directly cut airfare.
• Regulate monopolistic pricing: Government oversight could prevent excessive fare hikes during peak demand or emergencies.
• Expand subsidies and concessions: Restoring discounts for students and economically weaker passengers could revive affordability.

Until such measures are implemented, flying will remain a luxury for most Indians, with dreams of accessible air travel slipping further out of reach.