Carriers warn regulatory intervention could push up ticket prices, hit cost balance

Correspondent: Deepak Sagar, New Delhi

Air travel in India may become more expensive as airlines caution against potential regulatory changes to seat selection charges, a key component of their ancillary revenue.


Industry sources indicate that any move to restrict or eliminate seat charges could disrupt airlines’ revenue models, forcing them to compensate through higher base fares. Carriers argue that such add-on services enable them to keep headline ticket prices competitive while offering passengers flexibility.


“Ancillary revenues like seat selection help maintain fare balance. Removing them will inevitably reflect in higher ticket prices,” a senior industry official noted.


Aviation experts point out that intense competition in the Indian market has already kept airfares relatively low. In such a scenario, curbs on additional charges may challenge airlines’ ability to sustain operational costs.


Sources further suggest that the issue is currently under consideration at the regulatory level, with efforts underway to strike a balance between passenger interests and the financial viability of airlines.


Impact on passengers
If seat charges are scrapped, passengers may face higher upfront ticket costs. While this could improve pricing transparency, it may also reduce affordability for budget-conscious travelers.


As the tug-of-war between regulators and airlines continues, the eventual outcome is likely to have a direct bearing on millions of air passengers across the country.