Air India Crash Triggers 20% Drop in Bookings, Fares Down Up to 15% Across Routes

Post-Ahmedabad tragedy, travellers cancel trips; fares fall amid weakened demand

June 21, 2025 | In the wake of the tragic crash of Air India flight AI-171 on June 12, bookings for the national carrier have plummeted by up to 20% on both domestic and international routes, according to industry estimates. Simultaneously, fares have declined by 8–15%, as the airline grapples with a temporary crisis in passenger confidence.

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The devastating crash, which claimed over 270 lives after the Boeing 787 Dreamliner collided with a residential building shortly after takeoff in Ahmedabad, has significantly shaken public sentiment. Only one of the 242 passengers and crew members aboard survived.

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📉 Bookings Decline, Cancellations Surge

Ravi Gosain, President of the Indian Association of Tour Operators (IATO), confirmed a sharp downturn in ticket sales:

• International bookings: Down 18–22%
• Domestic bookings: Down 10–12%

“There’s been a sentiment-driven reaction, especially among corporate and premium leisure travellers, many of whom have chosen to switch carriers,” Gosain told PTI. He added that cancellations have surged by:

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• 15–18% internationally
• 8–10% domestically

However, he emphasised this trend may ease soon, as no systemic technical fault has been established and the DGCA (Directorate General of Civil Aviation) has reiterated that Air India remains compliant with global safety norms.

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💸 Fares Dip Across Sectors

Following the dip in demand, Air India fares have seen a noticeable reduction:

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• Domestic sectors: Fares down 8–12%, especially where Air India competes with budget airlines like IndiGo and Akasa Air
• International routes: Fares down 10–15%, particularly for Europe and Southeast Asia

“These are partly promotional adjustments and partly a yield correction in response to softened demand,” Gosain explained.

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✈️ Travel Industry Responds to Crisis

Rajiv Mehra, General Secretary of FAITH (Federation of Associations in Indian Tourism & Hospitality), corroborated the trend, stating that Air India fares are currently 10% lower than competitors on key routes. “We’ve observed a 15–20% decline in new bookings. The incident has led travellers to become more cautious,” he said.

He also called for stricter enforcement of aircraft maintenance protocols across all airlines to restore confidence in Indian aviation.

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🛫 Air India Yet to Respond Officially

As of now, Air India has not issued a formal statement in response to queries regarding the sharp drop in bookings or fare changes. However, the DGCA’s assurance of ongoing audits and flight safety monitoring may help reassure the public over time.

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🧾 Related Developments

• Air India CEO confirmed the aircraft was “well-maintained” before the crash
• Demand spikes for emergency exit seats, with flyers specifically requesting seat 11A, following the tragedy
• Air India has cut 15% of its international widebody flights and is expected to announce revised schedules soon
• Chandrasekaran, Air India Chairman, expressed sorrow and assured full cooperation with the investigation

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📌 Tags:

Air India Crash, Ahmedabad Plane Crash, Air India Bookings Drop, Airfare Reduction, Aviation Safety India, Flight AI-171, IATO, FAITH, DGCA India