Sky-high fares hit air travel

Mumbai: Going by online booking trends, the demand for air travel during the Diwali week is sluggish, primarily because of high fares. Typically, the third quarter is a strong season for airlines, both from a volume, as well a yield growth perspective.
The average load factor for November stands at 75 per cent, as leisure travel records a rise at this time.
Last November, domestic airlines carried 5.2 million passengers, 4,65,000 more than in October 2012.
“The 30-day forward fares around Diwali are up 10-70 per cent on key routes, and this has resulted in sluggishness in bookings for the festive period. There is definitely a negative impact of the higher fares we are seeing this year, and bookings are about 10 per cent lower compared to last year,” said Sharat Dhall, chief operating officer of Yatra.com.
Dhall said that the outlook for the holiday season was weak. He, however, hoped attractive hotel offers would offset high air fares and encourage people to travel.
Read news in full 03/10/13 Business Standard