Another Year, Another Problem for the Airline Industry

Just when you think that issues of the airline industry are resolving, another major roadblock arrives. The Indian government would be sitting in the corner relieved that it got done with the sale of Air India when things were a little good. Airlines, not just in India, but across the globe are facing the issues that the rapid spread of the Omicron variant has brought. Multiple flights have been cancelled or delayed due to the pandemic worsening. Further, state governments are imposing restrictions on the number of flights that can operate in a given week. All of this is hurting the airlines’ cashflow which by the way, was already in a bad place. But now, another issue has cropped up, and this doesn’t have anything to do with the spread of the Omicron variant.

Aviation Fuel Prices in India Increasing Steeply

The aviation or jet fuel price has increased steeply in one year and is further expected to increase. This would make it more expensive for the airlines to operate a single flight. However, this is not an issue that’s just limited to the airlines. You, i.e., the end consumer will have to bear the cost ultimately. Air fares are not going to be the same. With the number of flights restricted and the cost of operating a flight increasing significantly, the airlines will recover most of the cost from the passengers. If you thought air fares were expensive in India, wait for a few more months, and you will be saying that again, but this time, with a lot more pain.