Why your summer travel plans to London and Goa may get more expensive

Moreover, several carriers with long-haul operations such as Air India and IndiGo are being forced to take longer flight paths for their flights beyond West Asia, leading to longer flying times and additional fuel burn.

“Rising fuel costs also lead to a higher cost of living, which might further hit tourism,” Kaistha further said, adding that disruptions also cause a sense of uncertainty, which disincentives families to travel.

How are fuel costs impacting travel?

With the West Asia conflict leading to a surge in aviation turbine fuel (ATF) prices, Tata group airlines Air India and Air India Express have decided to levy a fuel surcharge on domestic and international flights.

Air India has applied a fuel surcharge of Rs 399 for domestic flights and hiked fuel surcharge for international flights from about Rs 9,500 to Rs 12,000. IndiGo’s fuel surcharges will range anywhere from from Rs 425 to Rs 2,300, based on destinations.

Without the fuel surcharges, some of its flights may not be able to cover operating costs and would risk cancellation, Air India had said earlier this month. ATF accounts for a significant 40% of the costs of an airline’s operating costs, it had said.

What are different government regulations impacting travel?

Regulatory changes, such as a direction to airlines to ensure free seats, may further complicate pricing.

Earlier this month, the Directorate General of Civil Aviation directed airlines to ensure that at least 60% of seats on flights are offered without any selection fee. While how Indian airlines will implement these directives is not clear yet, airlines have argued through the Federation of Indian Airlines (FIA) that this could lead to higher ticket prices.

According to media reports, the aviation regulator has approved a summer schedule, which runs from March end to October, with 12% or 3,000 fewer flights than last year. This comes months after the December chaos in the country caused by IndiGo’s mismanagement of flight operations.

Last year, the regulator had approved around 25,000 flights.

If people don’t travel, tourism and jobs will also take a hit, said experts.

Tourism is a significant employment generator and contributor to the economy. The tourism sector contributed Rs 15.73 lakh crore to India’s GDP in 2023-24, accounting for 5.22% of the total economy.

According to the Periodic Labour Force Survey (PLFS), the sector generated 36.90 million direct employment and 47.72 million indirect employment, together accounting for 13.34% of total employment in the economy.