Air India has seen a sharp decline in bookings, around 20 per cent on both domestic and international routes, following the tragic crash of a Boeing 787-8 Dreamliner aircraft last week.
Ravi Gosain, President of the Indian Association of Tour Operators (IATO), told PTI, “Following the unfortunate incident involving Air India, we have observed a temporary drop in bookings, particularly on international sectors. Our estimates suggest a decline of 18–22 per cent internationally and 10–12 per cent domestically.”
The crash occurred on June 12, when London-bound flight AI-171, carrying 242 passengers and crew, crashed in Ahmedabad shortly after takeoff. The aircraft went down in the Meghaninagar area, hitting a medical complex. Only one person on board survived, and the disaster claimed at least 30 lives on the ground.
While Air India has not issued an official statement in response to inquiries, industry voices have pointed to a mix of emotional reactions and market dynamics affecting booking trends and pricing.
“There has been a moderate fare correction,” Gosain said.
“Domestically, ticket prices have come down by 8–12 per cent, especially on routes where Air India competes with low-cost carriers like IndiGo and Akasa. Internationally, fares have dropped 10–15 per cent, particularly to Europe and Southeast Asia.”
These price adjustments, he noted, are a combination of promotional efforts and yield management strategies to offset reduced demand.
He said there has also been spike in cancellations, especially among corporate and high-end leisure travelers. Cancellations rose by 15–18 per cent internationally and 8–10 per cent domestically in the week following the crash.
However, he expressed optimism about recovery, noting that no systemic safety issues have been identified. “The Directorate General of Civil Aviation (DGCA) has reaffirmed Air India's compliance with international safety standards. We expect consumer sentiment to stabilize in the coming days.”
