DGCA Curbs Diwali Airfare Surge, Adds 1,700+ Flights

 Ahead of the Diwali rush, India’s DGCA has ordered major carriers—IndiGo, Air India/Express, SpiceJet—to deploy over 1,700 additional flights and temper fare surges, safeguarding travel agents and corporate planners from steep ticket cost volatility.

Diwali Airfare Strategy: What B2B Travel Stakeholders Must Know

As Diwali approaches, India’s aviation regulator is stepping in to manage a perennial challenge: soaring fares and constrained seat availability. This move has direct implications for travel agents, consolidators, corporate travel teams, and airline partners. Below is a revamped, deeper look at the developments and what industry players should watch out for.

DGCA’s Festive Mandate: More Flights, Tighter Oversight

Why Intervention Was Deemed Necessary

• Historically, airfare hikes between 50–80% during Diwali on high-demand routes are not uncommon.

• With demand set to surge again, the Ministry of Civil Aviation (MoCA) has instructed the DGCA to ensure “reasonable” pricing and increase capacity.

• Though airline fares are deregulated, the regulatory body retains power to step in when “excessive” increases are detected.

The Numbers: Flight Additions Across Carriers

In response to the directive, airlines have committed to significant capacity injections:

• IndiGo: ~730 additional flights across 42 sectors 

• Air India + Air India Express: ~486 extra flights across 20 routes 

• SpiceJet: ~546 extra flights on 38 sectors 

Combined, airlines will add ~1,762 extra flights to India’s domestic network.

 The DGCA has pledged to closely monitor fare movements and capacity deployment through the festive period.

What This Means for B2B Travel Agents & Corporate Planners

1. More Seat Inventory, But Not All Routes Benefit Equally

While airlines are expanding broadly, premium routes (Delhi–Mumbai, Bengaluru–Kolkata, Hyderabad–Chennai etc.) will see the most additions. Still, supply might remain tight on secondary or regional sectors.

Action Tip: Keep route-level forecasts ready. Monitor which sectors the airlines are boosting and advise clients to book early on secondary routes before fares spike.

2. Reduced Risk of Extreme Fare Surges

With added capacity, airlines have more flexibility to flatten fare curves instead of pushing them up aggressively. The DGCA’s vigilance will also discourage unjustifiable fare jumps.

Action Tip: Use fare tracking tools, and intervene (via alerts to airlines or DGCA) if you spot anomalous fare curves on destinations you serve frequently.

3. Pricing Strategy Adjustments for Agents & Marketers

Expect more fare slabs, early-bird offers, and dynamic pricing to absorb the added supply. Also, airlines might rotate capacity depending on demand response mid-season.

Action Tip: Negotiate flexible contracts with airlines that allow re-pricing or reallocation of inventory mid-season. Push “safe window” bookings for your clients.

4. Coordination with Airlines Becomes Critical

The success of DGCA's plan depends on airlines executing their extra schedules reliably. Delays, aircraft logistics, crew availability, and slots are all critical.

Action Tip: Maintain close communication with airline partners and upstream consolidators. Be ready for last-minute schedule tweaks or cancellations.

5. Reputational & Compliance Stakes Grow

If fare spikes or seat-denials occur despite DGCA oversight, negative media or regulatory backlash can affect all stakeholders — including agents accused of hoarding or blocking inventory.

Action Tip: Document your policies, booking practices, and client communication. In case of customer complaints, having transparent logs helps in damage control.

Risks & Caveats That Demand Your Attention

• Route imbalance: Supply swings will likely favor major metros. Smaller or regional airports may remain underserved.

• Operational challenges: Adding flights consistently across 2–3 weeks is logistically complex — crew rostering, aircraft maintenance, ground resources all come under stress.

• Late season surges: Should demand overshoot estimates, airlines might still attempt steep hikes on last-mile inventory or unpopular timings.

• Regulatory ambiguity: The DGCA’s “watching” power is reactive; agents must be proactive in safeguarding client interests.

• External shock sensitivity: Weather, air traffic congestion, regulatory holds (e.g. unexpected slot constraints) can disrupt the plan.
  
  

Strategic Takeaways for B2B Players

• Book early, but smartly — lock favorable fares for clients in advance, especially on high-traffic dates.

• Spread risk across multiple airlines — this way, if one carrier cuts back, you have backup.

• Maintain fare tracking dashboards — flag anomalies and escalate as needed.

• Negotiate flexible booking terms — reissue windows, hold policies, and allotment shifts will be vital.

• Strengthen airline relationships — sharing demand forecasts, combining load data, and co-monitoring performance helps ensure smoother operations.
  
  

Conclusion & Forward Outlook

The DGCA’s directive to expand flight capacity and curb runaway prices is both timely and ambitious. For B2B travel agents, consolidators, and corporate travel teams, this opens a window of opportunity — provided you act nimbly, stay informed, and partner closely with airlines.

In the months ahead, tracking execution will matter as much as planning. Make sure your internal systems, revenue teams, and client advisories are aligned with these evolving dynamics.

Want more travel updates like this? Follow our updates at blog.agentbazar.in and transform how you support your clients at every stage of travel.