Why Are Airlines Charging You So Much?

Dear Reader,

A couple days ago, I decided to visit an old friend in Srinagar over the October 2 weekend.

When I checked flights last week, a round trip from New Delhi cost about Rs 15,000.

Not too bad.

But I decided to wait a couple of days. I wanted some clarity on my plans before booking.

Then, earlier this week, my friend and I found ourselves in a tense conversation over text. 

We were trying to figure out whether my arrival and departure times would work for her.

“Can you just tell me quickly if it does?” I asked her again.

“I need a bit of time,” she replied.

“Okay, but how much?” I asked.

I was persistent because I wanted to book the tickets as quickly as possible. I knew that even waiting a few hours could mean paying a lot more than I had planned.

Anyone who has booked a flight recently knows the feeling: airfares can be wildly unpredictable.

In India, they’re also particularly high right now.

Airlines say rising costs are partly to blame. The conflict in West Asia has pushed up fuel costs, while a weaker rupee has made other dollar-linked costs more expensive.

But critics aren't convinced that rising costs tell the whole story.

“My personal view of where this originates from is airlines in India are turning into a loose cannon. Instead of being mature and supportive, airlines in India seem to demonstrate an attitude of being a territorial gang,” said Mark Martin, an aviation consultant.

And now, some consumers have had enough.

A PIL filed by S Laxminarayanan in the Supreme Court argues that air travel is an essential service, and calls for binding rules around airfares, including fare caps and limits on charges such as excess baggage.

At first glance, that might sound like a solid solution.

But fare caps come with their own trade-offs. 

If prices cannot rise when demand surges, airlines may have less incentive to add capacity, and last-minute seats could become harder to find.

So why are airfares fluctuating so much? And could fare caps actually make flying better for passengers?

To learn more, tune into the latest episode of The Signal Brief.

You can find The Signal Brief on YouTube, Spotify, and Apple Podcasts.

Thank you once again for listening and supporting us. We’d love to hear from you; write to us at [email protected] or find us on Instagram or X at @thesignaldotco.

Best,
Kudrat
on behalf of The Core

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