
Economy flyers may think twice before upgrading
Published on: Sept. 5, 2025, 12:33 a.m. | Source: The Economic Times
Airlines in India are experiencing a surge in premium cabin demand, but a recent government tax hike on business and premium economy seats threatens this growth. While business class may remain unaffected, premium economy could suffer as price-sensitive economy passengers reconsider upgrades. The tax increase adds to ticket costs, potentially hindering India's competitiveness as an aviation hub.