Airfares in economy class get up to 85% expensive:Business class flight ticket prices correct by up to 49%

Airfares have followed two very different trends this year. Economy class tickets have become significantly more expensive, while business class fares have fallen on most routes. According to data from aviation analytics firm Cirium, economy fares saw their sharpest rise this year since the fare cap imposed during the Covid period was removed in August 2022. In June, average economy fares increased year-on-year on 18 of the 20 busiest domestic routes in the country. In contrast, in June 2024, economy fares had declined on 17 routes. This year, economy fares rose by more than 15% on 11 of the busiest domestic routes in June. On five of these routes, fares increased by more than 30%. In contrast, business class fares fell on 16 routes, with declines of up to 49.3% on some routes. Airline executives said seat capacity has not increased in line with demand. At the same time, the war in West Asia pushed jet fuel prices up by around 33%. This has had a direct impact on airfares. June 2026: Economy fares take off, while business class sees a soft landing Demand and higher operating costs have pushed up fares: Air India According to an Air India spokesperson, the number of business class passengers increased in June. Higher demand and rising operating costs have pushed up business class fares in the current financial year (2026-27), the spokesperson said. The Ministry of Civil Aviation and IndiGo did not respond to questions. Did IndiGo disrupt the market? The data does not suggest so IndiGo launched its business class service, IndiGoStretch, on the Delhi-Mumbai route in November 2024. The service has 12 seats in a 2-2 layout, with a seat pitch of 38 inches. It is now available on 10 domestic routes. Business class fares declined by 2.9% to 7.5% on these 10 busy routes. Of the other 10 routes where the service is not available, fares fell by 3.9% to 49.3% on six routes and increased on four. The biggest declines were seen on routes where IndiGoStretch business class is not available. Economy fares also rose in February, while business class became cheaper Mumbai-Bengaluru: This is the country’s third-busiest route. Economy fares on this route fell 15.1% in June 2024 and 1.3% in 2025, before rising 38.8% in 2026. Delhi-Mumbai: Business class fares on this route increased 19.8% in June 2025, but fell 6.4% in June 2026. The report does not provide economy class fare data for this route. Before the Iran war: In February 2026, economy class fares had increased on 19 routes, while business class fares had fallen on 19 routes. Impact of fuel costs: From September 2025 to February 2026, jet fuel prices increased by only 0.75%. However, after that, jet fuel became 32.7% more expensive. Why are airlines moving in opposite directions? Why has economy class become more expensive? What is the strategy of airlines? According to airline executives, seat capacity has not increased in line with demand. At the same time, jet fuel has become more expensive. Airlines now have less need to attract passengers with cheap tickets. They are willing to lose price-sensitive travellers because passengers who need to travel are willing to pay higher fares. Why have business class fares become cheaper? What is the business model? Executives said business class fares had become too high and airlines are now correcting them. Competition has also increased with IndiGo’s entry into the segment. Air India has added premium seats to both its older and newer A320neo aircraft inherited from the former Vistara fleet. In other words, airlines are effectively premiumising the economy class cabin.