Spot airfares on four of the top five Go First routes have risen by up to 2.5 times on a year-on-year basis, data from online travel portal ixigo show. Similarly, advance purchase fares on three of its top five routes, have witnessed up to 2.2x rise due to capacity shortage and rising demand.

The Wadia Group-owned Go First suspended operations on May 2 due to cash crunch resulting from defective engines. Efforts to restart operations have come to a naught, and the airline is staring at liquidation. The airline was operating around 200 flights daily carrying 25,000-30,000 passengers, with 26 of its 54 aircraft before grounding operations.

According to aviation analytics firm Cirium, Go First’s biggest routes before its collapse in May were Delhi-Srinagar, Mumbai-Goa, Delhi-Leh, Delhi-Pune, and Delhi-Ahmedabad. While other airlines have added flights on Ahmedabad and Pune routes from Delhi in the winter schedule, the Leh and Srinagar sector have seen capacity cuts. This is also in line with the seasonal trends as airlines operate fewer flights to Leh and Srinagar in winter compared to summer. Go First’s grounding has made the capacity crunch worse.

biggest hike

Last minute fares on four of the five top Go First routes have seen an increase, with the biggest surge (151 per cent) seen on the Delhi-Leh route. The only exception is Mumbai-Goa route, where fares have declined year-on-year. In the case of advance purchase fares (tickets booked for travel 15-30 days before travel date), the fare rise was witnessed on three of the five top routes. The biggest hike was seen on the Delhi-Ahmedabad route (126 per cent). Advance purchase fares have dropped on Delhi-Leh and Mumbai-Goa routes, according to ixigo data.

“This year we have observed an increase in spot fares and advance purchase fares on certain routes due to capacity shortages. Loss in capacity due to grounding of Go First fleet has not been replenished fully and as a result fares on routes where Go First was dominant have seen a significant rise. Additionally, travel demand has also surged. The number of air passengers that travelled in November is up by 7 per cent on a year on year basis largely driven by the festive season,” said Aloke Bajpai, Group CEO and co-founder of ixigo.

The number of flights in operation now is also higher compared to May.  Airlines operated around 2,950 domestic flights daily in November compared to 2,822 in May. Growth in capacity and passenger traffic is seen on a month-on-month basis, too, in November. Yet, on routes like Srinagar, demand fare exceeds supply, resulting in higher ticket prices.

“Accessibility and beauty are the two USPs of Kashmir compared to other hill destinations. Demand for travel to Kashmir is growing even in winter and it now far outstrips the supply. That is the reason for higher fares,” said Abhijeet Patil, chairman of Raja Rani Travel Private Ltd. 

Leh, on the other demand, is seeing fare increase for last-minute travel because of Army movement and return of local pilgrims. The peak travel season in Ladakh is between May and July, and local travel agents are worried that capacity shortage could keep fares elevated next season, too. “ High airfares can deter tourists from choosing Ladakh. Travellers may opt for more affordable destinations, leading to a decrease in number of of visitors,” said local travel agents and hotel associations in a representation to Ladakh MP Jamyang Namgyal last month.