Domestic airfares in India have surged up to 40% in key routes due to higher traffic and capacity constraints in the last six quarters. India is one of the world's fastest-growing civil aviation markets, with an average of 4.5 lakh passengers daily. However, capacity constraints are a key challenge as many aircraft are grounded due to supply chain issues. Aviation consultancy firm CAPA India reported that average fares on the top 20 domestic routes had not moved significantly in nominal terms for the last two decades, until the last six quarters.
