India’s economy airfares posted their sharpest post-Covid rise during H1 2026 across major domestic routes. Cirium data reviewed by Business Standard showed higher fares across 18 of India’s 20 busiest routes. 

The trend emerged as airlines faced tight capacity while demand remained firm among essential domestic travelers. Economy fares climbed over 15% on 11 routes, while five routes recorded increases above 30%. 

Mumbai-Bengaluru flights offered a clear example, with economy fares rising 38.8% year over year during June. Business class moved in the opposite direction as average fares declined across 16 major routes during June. 

Some routes saw steep premium fare cuts, with the Bengaluru-Chennai route showing a 49.3% annual decline. Delhi Srinagar showed another striking gap, as economy fares jumped 85.1% while business fares dropped 20.1%. 

The shift reflects a broader correction in premium pricing after earlier increases pushed fares higher. IndiGo’s entry into premium travel and Air India’s added capacity increased competition across several important routes. 

Cirium data indicates IndiGoStretch alone does not explain the broader business fare decline. Business fares also decreased on several routes where IndiGo does not offer its premium product.

Economy pricing faced stronger pressure as available capacity failed to keep pace with passenger demand. Jet fuel costs added another burden after prices climbed 32.7% between February and September. 

The economy class fare increase started well before the West Asia conflict pushed fuel prices higher. Cirium data showed economy fares rising across 19 of the 20 busiest routes during February 2026. 

Industry executives said essential travelers remain more willing and able to absorb higher fares. Air India reported stronger business class passenger numbers in June compared with the same month last year. 

An Air India spokesperson said, “Business-class fares have also risen over this period,” citing demand and higher operating costs. The contrasting movement gives domestic travelers a new pricing pattern to watch during the remainder of 2026.

Also Read: Indian Airlines Raise Fuel Surcharges as Iran War Pushes Aviation Turbine Fuel Prices Higher