Air fares take a hit, flights drop big on Diwali! This kind of scene was seen for the first time after covid

Diwali is usually the busiest time for air travel in India. During this time a large number of people travel by flight to go home, celebrate festivals with family and spend holidays. But this time the picture is different. Due to expensive air fares and rising costs of airlines, the number of flights during Diwali has decreased.

Indian airlines have scheduled about 6% fewer flights between October and November 2026 compared to the same period last year, according to data from aviation analytics company Sirius. This is the first time since the Corona pandemic that the flight capacity of airlines has decreased annually around Diwali.

The number of flights fell for the first time since 2020

Due to restrictions on air travel in the year 2020 during the Corona epidemic, airlines had to drastically reduce their flights. At that time companies reduced their flight capacity by about 45%. After this, there was a rapid recovery in the Indian aviation sector and the number of air passengers continued to increase. But for the first time in 2026, airlines have reduced the number of their flights during the busy season of Diwali. The change reflects the growing cost and operational pressures on the country’s fast-growing aviation sector.

Expensive tickets spoil the budget of passengers

The reduction in the number of flights has a direct impact on the price of air tickets. During the festivities, fares on many routes soared that it became difficult for passengers to travel by air. This can be estimated from the experience of a marketing professional living in Hyderabad. He had planned to go to his home in Siliguri a few months before Diwali, but still could not get a cheap ticket. According to him, the one-way flight fare from Hyderabad to Siliguri had gone up to Rs 20,000. This amount was equivalent to a round trip ticket under normal circumstances. Thus increasing fares have added to the hardships of common commuters going home during the festival.

The number of domestic air passengers also declined in September

The impact of the increase in air fares is also being seen on the number of passengers. In September 2026, the number of domestic air passengers in India declined by 6.5% year-on-year. The challenge for airlines is that on one hand they have to keep fares high due to rising operating costs, on the other hand due to expensive tickets affecting passenger demand. It is also becoming difficult for companies to strike a balance between ticket prices and seat bookings in planes.

Why are airline costs increasing?

• Rising prices of aviation fuel: Aviation fuel i.e. ATF is a major part of the total operating cost of airlines. Due to the cost of fuel, the costs of companies are increasing rapidly.
• Rupee Weakness: Aircraft leasing, maintenance and many other international expenses are paid in dollars. Rupee weakness puts additional financial burden on airlines.
• Airspace Restrictions: Due to airspace restrictions on some international routes, aircraft have to fly long routes. Due to this, both fuel consumption and operating costs are increasing.

Indigo also suffered huge losses

Even IndiGo, the country’s largest airline, is facing pressure from rising costs and weak passenger numbers. The company reduced its capacity by 1% during the quarter ended September 2026. During this period, the company transported 4.5% fewer passengers compared to the same period last year. However, the average earnings per passenger i.e. passenger yield increased by over 34%, even though the company posted a quarter-on-quarter revenue of Rs. 1,880 crore has been lost.

The main reason for this was a 67% increase in the company’s fuel costs. This situation shows that even though tickets are expensive, it is not easy for airlines to make a profit. The benefit of higher fares may be limited unless a sufficient number of passengers are traveling on the aircraft.

Is the Indian aviation sector slowing down?

India is one of the fastest growing aviation markets in the world. The number of airports in the country is increasing and the circle of people traveling by air is also constantly expanding. However, the reduction in the number of flights during Diwali is an important sign. This shows that despite passenger demand, it is becoming challenging for airlines to operate enough flights on each route. If fuel prices remain high, the rupee remains weak and operational issues persist, airfares may remain under pressure in the near future.