Air India bookings down 20 per cent; fares dip up to 15 per cent

Following the June 12 Air India Dreamliner crash, bookings have dropped by up to 20 per cent and fares have fallen 8–15 per cent on key routes. Increased cancellations were reported, especially among international and corporate travelers, though experts expect short-term impact

New Delhi: Bookings for Air India flights have declined by around 20 per cent on domestic as well as international routes while the average fares have dropped by 8-15 per cent in the aftermath of the Boeing 787-8 Dreamliner crash last week, Indian Association of Tour Operators (IATO) President Ravi Gosain said on Friday.

An Air India spokesperson did not respond to a query seeking comments from the airline. A London-bound Air India flight, AI-171 carrying 242 passengers and crew members crashed in Ahmedabad on June 12. All but one on board the plane died along with nearly 29 on the ground when the aircraft smashed into a medical complex in Meghaninagar area of the city shortly after takeoff.

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“Following the unfortunate incident involving Air India, we have observed a temporary decline in bookings, particularly on international sectors. While the exact percentage varies by route, our estimates indicate a dip of around 18–22 per cent on international bookings and a 10–12 per cent decline domestically in the immediate aftermath. However, this appears to be a short-term sentiment-driven reaction, as confidence typically stabilizes over time,” Gosain said. The IATO president shared that there has been a moderate adjustment in fares across key Air India routes.

“On average, ticket prices have reduced by 8–12 per cent on domestic sectors where the airline competes directly with low-cost carriers like IndiGo and Akasa. On international routes, especially to Europe and Southeast Asia, fares have seen a drop of 10–15 per cent, depending on route occupancy and competition. These reductions are mix of promotional strategies and yield correction due to lowered demand,” Gosain said.

Asked whether there have been cancellations by travellers for Air India flights booked via tour operators, the IATO president said, “Yes, we have witnessed a noticeable rise in cancellations, particularly from corporate and high-end leisure travellers who prefer to switch to alternative carriers”.

He informed that the increase in cancellations was 15–18 per cent internationally, and 8–10 per cent domestically over the past week. However, this trend may normalise in the coming days as no systemic safety issue has been reported and authorities like DGCA reaffirm Air India’s compliance with international safety standards.

Federation of Associations in Indian Tourism & Hospitality (FAITH) General Secretary Rajiv Mehra also shared that an up to 20 per cent decline in bookings has been observed for Air India flights while the fares have turned cheaper by about 10 per cent on certain sectors where there is high competition with other carriers.

“As far as Air India is concerned, fares are around 10 per cent cheaper for both domestic and international routes than other airlines on certain sectors. Besides, there is a 15-20 per cent decline in new bookings for Air India flights on domestic as well as international routes after the crash,” Mehra said. He asserted that all airlines have to pull up their socks as far as aircraft maintenance is concerned, to ensure passengers.