IndiGo CEO defends rising airfares, says cost must match sustainability needs

IndiGo CEO Pieter Elbers has defended the rising airfares across Indian airlines, saying that operational costs must be factored in while evaluating ticket prices. Speaking to CNBC-TV18, Elbers warned that unfair criticism could harm the long-term sustainability of aviation companies.

Referring to complaints about steep airfares, especially during peak seasons, Elbers said India remains one of the most competitive aviation markets globally. “To have a body like Air Sewa is good, but we must also recognise that the average price levels in India are extremely competitive,” he said.

The airline chief pointed out that airfares have not kept pace with inflation over the last several years. Stressing the need for balance, Elbers said, “There must be a correlation between the cost of doing business and the price of airfares. Otherwise, you’ll be out of business.”

In response to proposals from a Parliamentary Committee recommending temporary price caps by the DGCA during high-demand periods, Elbers emphasized the need to think beyond immediate complaints and consider the global competitiveness of Indian aviation.

Drawing comparisons with the hospitality industry, he said, “Yes, there are peaks, but so is that in hotels. If India wants global aviation giants, we have to accept global dynamics.” He made it clear that occasional high prices were a result of demand-based systems and not deliberate overcharging.

Addressing concerns about ₹40,000 ticket prices during events like the Mahakumbh, Elbers said such instances were rare and driven by algorithms. “If there’s one ticket priced at ₹40,000 on a route, that’s occasional. Sometimes these systems push up prices,” he explained, urging passengers to look at the broader picture rather than isolated cases.