Average air ticket prices in India surged by 9% in the first quarter of 2024. This is attributed to a rise in travel demand and robust economic growth, as reported by FCM Travel, listed on the Australian Securities Exchange.

During the January-March period, premium class bookings experienced a notable 20% increase compared to the previous year, driven by sectors like manufacturing, IT, and conglomerates. Sunny Sodhi, MD, FCM Travel India, highlighted that while domestic air capacity expanded by over 3%, the heightened demand led to the 9% rise in average ticket prices.

Popular routes for business travel include Delhi to Mumbai, Mumbai to Delhi, and Bengaluru to Mumbai. With India poised to become the 7th largest business travel market globally, the aviation boom in the country is facilitating this growth.

Business travellers are increasingly willing to invest in a premium travel experience. Additionally, international air capacity has grown by 14%, with average international airfares decreasing by 15%, reflecting a global trend of declining yields across airfares.

(ET Infra)