INDUSTRY
Airlines offer basic fare options to woo passengers with lower ticket prices
- IBJ Bureau
- Jul 02, 2026
Domestic airlines are increasingly unbundling their products to cater to different categories of travellers.
They are offering stripped-down fare options that lower the entry ticket price, while charging passengers separately for services, such as checked baggage and meals.
The move, led by IndiGo and Air India over the past few weeks, reflects a growing focus on attracting price-sensitive passengers without resorting to blanket fare cuts, while also opening up new avenues for ancillary revenue.
InterGlobe Aviation-operated IndiGo has introduced IndiGo Lite, an entry-level fare category for economy passengers travelling on direct domestic and international flights.
The fare allows passengers to travel with only a cabin bag of up to 7 kg and includes an auto-assigned seat, making it the airline’s cheapest ticket option.
The launch of IndiGo Lite comes barely two weeks after Air India rolled out its basic fare on select domestic routes, offering tickets that are around Rs 500 to Rs 600 cheaper by excluding complimentary hot meals, while retaining the standard 15-kg checked baggage allowance, 7-kg cabin baggage and tea or coffee.
Air India Express too offers a cabin baggage-only fare for travellers looking for lower-priced tickets.
The back-to-back launches underscore a broader shift in airline pricing strategies, where carriers are increasingly moving away from a one-size-fits-all approach towards segmented fare products.
Instead of cutting fares across the board, airlines are allowing passengers to choose only the services they require, whether it is checked baggage, meals, preferred seating or flexibility to modify bookings.
The strategy also enables airlines to display lower headline fares on travel booking platforms, where ticket prices often influence consumer choice, while generating additional revenue through optional add-on services.
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