Go First's May 2023 bankruptcy reduced airline competition and flight capacity across 315 routes. This structural supply shortage is the primary driver of sharply increased flight ticket prices in India.

CURRENT STATE

This supply contraction, combined with IndiGo's fleet issues, caused a 43% rise in domestic airfares in the first half of 2024 compared to 2019. Some routes saw fare increases up to 229%. High aviation turbine fuel taxes account for 45% of air ticket prices.

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