What Happened
India Sees Unusual Divide in Domestic Aviation Fares
Economy-class airfares in India have seen their sharpest increases since Covid-era fare caps were removed, with average fares rising on 18 of the 20 busiest domestic routes in the first half of 2026, according to Cirium data reviewed by Business Standard. In contrast, business-class fares have fallen on most routes, creating an unusual divide in domestic aviation. Airlines are willing to lose some price-sensitive passengers who traveled when tickets were cheaper, while essential travelers are considered more willing and able to pay higher fares. This trend was first reported by Business Standard.