Aviation Sector Deep-Dive Analysis - Airfares And Passenger Demand: Motilal Oswal
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Motilal Oswal Report
The Ministry of Civil Aviation has extended domestic airfare bands (floor and cap) up to March 31, 2021 (versus up to February 24, 2021, earlier) or until further notice.
With this extension, MoCA has reduced the quantum of tickets to be sold below the median fare of the airfare band to 20% (versus 40% earlier).
Theoretically, this downward revision would increase weighted-average airfare for companies.
Reflecting on airfares since May, as per our airfare tracker, fares peaked in October 2020 (up approximately 40%), led by pre-festive demand.
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