Indian Airlines has slashed fares from the UAE to India following Emirates’ decision to hike ticket prices, as the battle for control over the lucrative market segment heats up.
Indian Airlines cut its fares from Dubai and Sharjah to destinations across India by as much as 30 percent after Dubai-based Emirates said it will raise ticket prices up to 10 percent in the face of soaring fuel costs.
Flights from Sharjah to New Delhi are down 30 percent to 740 dirhams ($201), while flights from Dubai to New Delhi have dropped 26 percent to 790 dirhams, India’s Business Standard reported on Friday.
Fares from Dubai to destinations in Kerala have been cut around 12 percent to 790 dirhams, while fares from Dubai to Mumbai have gone down about 10 percent to 790 dirhams.
The newspaper said Indian Airlines began the promotion last Monday.
Emirates said earlier this month that from from Aug. 1 it will raise ticket prices on all routes by 10 percent for first and business class passengers and by 5 percent for those in economy.
It is the second time Emirates has hiked its fares in the last few months after increasing ticket prices by 9 percent in June.
The entire aviation industry is coming under increasing pressure due to record oil prices, which have sent the cost of jet fuel skyrocketing.
Airline executives, including those from British Airways, warned last week at the UK’s Farnborough Airshow that passengers will have to pay more to fly as airlines struggle to cope with rising costs.
Carriers are imposing fuel surcharges, cutting flight capacity and even flying more slowly to lower costs, but higher air fares may also be inevitable with oil recently nudging $150 a barrel, executives said.
Many airlines will likely plunge into billions of dollars of losses this year as fuel costs grow to $190 billion, or 34 percent of operating costs, according to the International Air Transport Association (IATA).
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