Air India has experienced a sharp decline in bookings for both domestic and international flights following last week's tragic crash in Ahmedabad. The airline’s airfares have also moderated and a noticeable section of passengers have cancelled their bookings, especially on international routes.
Ravi Gosain, President of Indian Operators of Tour Operators (IATO) said that while the exact percentage varies by route, their estimates indicate a dip of around 18–22% on international bookings and a 10–12% decline domestically in the immediate aftermath. He added his appears to be a short-term sentiment-driven reaction, as confidence typically stabilizes over time.
Gosain also said that there has been a moderate adjustment in fares across key Air India routes. On average, ticket prices have reduced by 8–12% on domestic sectors where the airline competes directly with low-cost carriers like IndiGo and Akasa.
“On international route, especially to Europe and Southeast Asia, fares have seen a drop of around 10–15%, depending on route occupancy and competition. These reductions are mix of promotional strategies and yield correction due to lowered demand,” he stated.
A senior executive at a listed Online Travel Agency also confirmed that passengers are opting for alternative carriers after the ill-fated accidents. “The Ahmedabad crash and a spate of ongoing technical glitches reported with Air India flights in having an impact on passengers’ sentiments,” the executive said while requesting anonymity.
Comment sought from Air India on IATO’s estimates was not answered.
Gosain also said that they have witnessed a noticeable rise in Air India flight cancellations, particularly from corporate and high-end leisure travellers who prefer to switch to alternative carriers.
“The increase in cancellations ranges between 15–18% internationally, and 8–10% domestically over the past week. This trend may normalize in the coming days as no systemic safety issue has been reported and authorities like DGCA reaffirm Air India’s compliance with international safety standards,” he stated.
In a tragic accident, an Air India Boeing 787 Dreamliner (flight number Al171) bound for London, carrying 242 passengers and crew, crashed shortly after takeoff from Ahmedabad Airport on June 12. Only one person survived the crash.
Following this, Air India reduced its international services on widebody aircraft by 15% for the next few weeks. The Tata Group airline said on Wednesday that due to the geopolitical tensions in the Middle East, night curfew in the airspaces of many countries in Europe and East Asia, the ongoing enhanced safety inspections, and also the necessary cautious approach being taken by the engineering staff and Air India pilots, there have been certain disruptions in their international operations over the last 6 days leading to a total of 83 cancellations.