UAE-India flights: Will airline ticket rates keep climbing for too long?

UAE’s decision to again allow flights from India led to overnight increases in ticket rates, with Indian expats who had been stuck there rushing to get back to the Emirates.

Economy class tickets from New Delhi or Mumbai cost between Dh900 to Dh1,500. Last week, they were hovering around Dh1,500 to Dh1,800. A trip from Kochi was costing Dh1,100 and higher one-way. The current entry-level ticket to the UAE is around Dh 850 to Dh900 as opposed to the pre-pandemic Dh500.

Deepak Hiranandani of Rayna Tours & Travels says cities like Ahmedabad and Jaipur represent a “unique” travel market considering the current market situation. Tickets from those cities are 60 per cent higher due to limited number of carriers operating flights. Therefore, Madhya Pradesh and Rajasthan residents tend to come to Delhi or Mumbai to make a return trip to the UAE.

For now, ticket rates from the UAE to India are still on the lower side. A Dubai to Thiruvananthapuram seat costs passengers over Dh450 one-way. Fares to Bengaluru are starting from Dh282.

Since Emirates and other carriers confirmed that residents no longer need a vaccination certificate, more UAE-based NRIs are planning a short trip to India. “Demand for flights from both ends have increased. However, the number of passengers from India are more than those flying from here,” said Sudheesh of Deira Travels.

Hiranandani expects ticket prices to be around Dh400-Dh800 by October-end for a one-way flight from India to the UAE. Indian carriers are expected to price around Dh420 one-way and UAE airlines at Dh650 and over. However, ticket prices should swell to Dh800 and above in November if the traditional demand spike during Diwali surfaces.

On August 22, flydubai announced that passengers from India, Nepal, Nigeria, Pakistan, Sri Lanka or Uganda with tourist visas can travel to the UAE - if they have not entered or been in those countries in the last 14 days. PCR requirements will be based on the country of departure, the airline's website said.

Passengers are expected to arrive at airports six hours prior to departure. Hiranandani said: “Due to rapid PCR testing, passengers are advised to be at the airport well in advance. Also, delays in immigration can be expected sue to social distancing.”

The UAE - which allowed conditional re-entry for residents from India, Pakistan, Sri Lanka, Nepal, Nigeria, and Uganda - was expecting 650,000 travellers from the six countries. Once expats stuck abroad make their return, the next phase of opening up will be about letting in tourists from those. Local travel and tourism industry sources expect visitors to be allowed by mid-September. The authorities, however, have not confirmed this.

Tourism is one of the most systemically important sectors for the UAE economy. The UAE is also one of the most travel-friendly destinations for both the east and the west. The main criteria that tourists look for is the flight duration, and since the UAE is just a few hours away from key Asian markets, Hiranandani says tourist arrivals from there will be the first show up once everything returns to normal.

During the Expo months, one-way flight rates are expected to hover around Dh450-Dh650 in a move to encourage more visitors.

Passengers can expect GDRFA approval within 48 hours on average. ICA on the other hand will be approved within two to four working days.

All non-Dubai residence visa holders must apply for and receive approval from the Federal Authority for Identity and Citizenship (ICA). Dubai residence visa holders should apply for GDRFA approval prior to their travel.

In India, around 35 airports are now equipped with rapid PCR facilities. More such facilities can bring down the wait time at the airports.