'Don't Travel By Air': Why Ticket Prices Soar During India's Festive Season

“Don’t travel by air. Next case.” The Supreme Court's response to a plea seeking urgent listing over an alleged 700% surge in Diwali airfares has brought the issue of rising air ticket prices back into focus. Justice Vikram Nath declined the request for an urgent hearing on Monday.

The remark drew criticism on social media, with users questioning whether asking passengers not to fly addressed the concerns of people facing steep ticket prices during the festive season.

For many Indians, festivals are an occasion to travel home and spend time with family. However, airfares often climb sharply during these periods, making air travel increasingly expensive. A LocalCircles survey cited by Livemint found that 54% of respondents travelling home this festive season said they were paying over 50% more than they had for comparable journeys in 2025.

While seasonal demand is a key factor behind the increase, rising aviation fuel prices and higher operational costs also contribute to the surge in ticket prices.

Why Do Airfares Rise During Festive Seasons?

Airfares in India are dynamic and largely determined by demand and supply. In a December 14, 2023, response published by the Press Information Bureau (PIB), the Ministry of Civil Aviation said ticket prices depend on the number of seats already booked, fuel prices, aircraft capacity, competition on a route, festivals, holidays and long weekends.

Airlines follow multiple fare levels, known as booking buckets or Reservation Booking Designators (RBDs). A limited number of seats are initially offered at lower prices. As these are booked, the remaining seats may be sold at higher rates. Consequently, tickets purchased closer to departure are generally more expensive.

Fuel prices also affect operating expenses. Aviation turbine fuel (ATF) prices increased from around ₹60.50 per litre in March 2026 to ₹142 per litre in May 2026 amid a rise in international jet fuel prices following the West Asia conflict. ATF accounts for around 40 per cent of an airline's operating costs and can reach 60 per cent during periods of extreme volatility, the report said.

The closure of Pakistani airspace has added to the costs for Indian carriers. Now airlines have had to take longer routes to Europe, North America and Central Asia, increasing fuel consumption. Initial estimates put the additional cost at around ₹307 crore a month.

What Exactly Are Passengers Paying For?

An air ticket broadly comprises air transportation charges and taxes or fees. These vary according to the airline, airport and type of journey.

Air transportation charges include:

• Base fare: The basic amount charged for carrying a passenger between two destinations, before taxes.

• Fuel surcharge: An additional charge linked to aviation fuel costs.

• Common User Terminal Equipment (CUTE) charge: Covers shared airport systems such as check-in counters and boarding-pass facilities.

• Regional Connectivity Scheme (RCS) charge: A levy introduced to support connectivity to underserved and unserved areas.

Taxes and other fees include:

• User Development Fee (UDF): Charged by airports to support infrastructure development and modernisation.

• Aviation Security Fee (ASF): Covers airport security expenses.

• Goods and Services Tax (GST): Levied on air travel, with rates varying according to the class of travel.

• Convenience fee: Usually charged by booking platforms for processing reservations.

Can The Govt Regulate Airfares?

Airfare regulation was deregulated in India in 1994 following the repeal of the Air Corporations Act. In a July 21, 2022, statement, the Ministry of Civil Aviation said fares were market-driven and not ordinarily established or regulated by the government.

Under Rule 135 of the Aircraft Rules, 1937, airlines determine tariffs while considering operating costs, the nature of services, reasonable profit and prevailing fares. However, the DGCA can issue directions if it finds excessive or predatory tariffs or oligopolistic practices.

The Parliamentary Standing Committee on Transport, Tourism and Culture, in its August 10, 2023, report on fixing airfares, flagged steep fare increases and wide variations in ticket prices. It recommended empowering the DGCA to regulate air tariffs and establishing a monitoring body with quasi-judicial powers. It also called for a review of airport charges and dynamic pricing.

What Is The DGCA Doing During Festive Seasons?

The DGCA monitors airfare trends, particularly during periods of high demand. According to a PIB release dated October 5, 2025, it asked airlines to increase flight capacity ahead of the festive season.

IndiGo planned around 730 additional flights across 42 sectors, Air India and Air India Express around 486 across 20 sectors, and SpiceJet around 546 across 38 sectors.

However, additional flights and fare monitoring do not amount to permanent price controls. With airlines retaining the freedom to determine tariffs under the existing framework, passengers travelling on fixed dates during periods of high demand continue to face higher fares.