Understanding the Economics of India’s Skyrocketing Airfare: Why Bhubaneswar to Ayodhya is So Expensive—Everything You Need to Know

Published on November 23, 2025

In an era where affordable air travel should be the norm, many are shocked to discover that a flight from Bhubaneswar to Ayodhya costs as much as one heading to China. What’s behind this absurdly high price tag for short domestic flights in India? Could it be that India’s aviation industry is quietly rigged in ways that inflate ticket prices for popular routes? As domestic airfares continue to soar, it’s clear that there is more at play than simple supply and demand. This article uncovers the economic dynamics behind these shocking fares and provides insights into why these routes are among the most expensive in the country.

The Truth Behind India’s Skyrocketing Domestic Airfare

While many travelers are familiar with the frustrations of expensive flight tickets, it might surprise you to learn that short-haul routes often offer better profit margins for airlines. This is one of the main reasons why tickets for relatively short flights within India, like from Bhubaneswar to Ayodhya, can be just as pricey as international flights. It’s not simply a matter of demand outstripping supply. Airlines make substantial profits on these high-demand, underserved routes, particularly when the flight frequency is limited. But why does this happen, and what is the impact on consumers?

Why Short-Haul Domestic Routes Are Goldmines for Airlines

Airlines operate on thin margins, and short-haul flights are often the bread and butter of their business models. For airlines operating in India, these routes are an opportunity to fill seats at a premium cost. The Bhubaneswar-Ayodhya route, for instance, is underserved, with limited direct flights, meaning the competition is minimal. This allows airlines to charge high prices without the usual fear of losing customers to competing carriers.

Unlike international routes, where competition between airlines is often fierce, domestic short-haul routes suffer from insufficient competition, particularly in regions with fewer transportation alternatives. Travelers who need to reach such destinations are left with no choice but to pay high prices.

International Flight Costs vs. Domestic Airfare: A Startling Comparison

It may seem almost absurd to pay the same for a flight from Bhubaneswar to Ayodhya as one to a far-flung country like China, but this pricing trend is becoming more common in India. International flights, especially on major routes, benefit from economies of scale, increased competition, and wider market reach. Meanwhile, domestic flights, especially on less-travelled routes, are marked up because airlines know they can get away with it.

In India, the aviation industry lacks enough competition and infrastructure to bring down prices. This absence of competition combined with limited flight options results in inflated airfares for domestic travelers. International routes tend to have more flights, more competition, and greater infrastructure, meaning lower overall prices despite the long distances involved.

How Airline Pricing Strategies Impact Your Wallet

Airlines have long relied on pricing strategies that favour profitability over passenger convenience. For short domestic routes, such as Bhubaneswar to Ayodhya, pricing isn’t just about covering operational costs. It’s about maximising profits from underserved markets.

On the other hand, international routes usually feature larger planes and longer distances, which airlines can fill with a variety of fare classes to ensure profitability. With short domestic routes, the lack of frequent services and the demand for punctuality means airlines can charge what they want. And, unfortunately for consumers, the prices reflect this.

What Should Travelers Know to Navigate High Airfares?

If you’re planning to fly from Bhubaneswar to Ayodhya, or any other underserved route, there are a few things you can do to save on airfare. First, it’s important to book well in advance. Airfares are typically higher for last-minute bookings, especially on less-frequented routes. Additionally, exploring alternative travel dates may help reduce costs as airlines adjust their prices according to demand.

Another smart option is to use price comparison tools. Websites and apps that compare airfares across multiple airlines can help identify the best deals for your specific route. While there might be little you can do to change the pricing strategy of the airlines themselves, taking the time to hunt for cheaper tickets can significantly impact the price you pay for your travel.

Why India’s Aviation Market Needs Urgent Reform

The current pricing structure of India’s aviation industry seems skewed, disproportionately affecting passengers flying on short domestic routes. For a country with such a vast and growing aviation market, this creates an uneven playing field where high fares are an obstacle to affordable travel.

Reforming these pricing mechanisms could help lower airfares across the board, especially on popular routes that are currently dominated by a few players. Encouraging competition, increasing the frequency of flights, and providing better infrastructure can go a long way in ensuring that domestic travelers are not left to shoulder exorbitant costs just to reach nearby destinations.

Takeaway for Indian Travelers

While the high cost of flights from Bhubaneswar to Ayodhya may seem unusual, it is merely the result of deep-seated inefficiencies within the aviation sector. As travelers, it’s essential to stay informed and look for ways to navigate the rising costs of flying. But more importantly, it’s time for reforms that ensure the aviation industry becomes more accessible and affordable for all.