Starting September 22, 2025, air travel in premium cabins such as business class and first class will become more expensive due to revised GST (Goods and Services Tax) rates. While the government has focused on affordability and consumer relief in several sectors, this move will specifically raise the cost of flying outside of economy class.
What the GST Change Means
Economy class fares remain unchanged, keeping budget travel affordable.
Business class and first class fares will see higher GST rates, directly increasing ticket prices.
The change is aimed at balancing affordability for mass travelers while maintaining a luxury tax bracket for premium flyers.
Impact on Travelers
Higher Ticket Costs: Premium passengers will pay more starting September 22.
Corporate Travel Budgets: Companies may revise their travel policies to accommodate higher airfares.
Leisure vs. Luxury: Travelers may shift toward economy cabins to save on costs.
Aviation Industry Outlook
Industry experts believe that while premium cabin demand may see a marginal dip due to higher costs, economy travel will remain strong, especially ahead of the festive and holiday season. Airlines may also focus on offering loyalty rewards and bundled packages to retain premium flyers.
Key Takeaway
The GST revision makes premium flying costlier, while keeping economy travel affordable for the majority. For frequent flyers, this may be a cue to plan bookings in advance and make the most of airline loyalty programs.
FAQs
Q1. From when will premium air travel become costlier?
Premium flying will get costlier from September 22, 2025, as per the new GST rules.
Q2. Will economy flight tickets be affected?
No, economy class fares remain unchanged, ensuring affordability for the majority of travelers.
Q3. Which classes will be affected by the GST hike?
Business class and first-class cabins will face higher GST rates, raising their ticket prices.
Q4. Why has the government raised GST on premium flying?
The move ensures mass affordability for economy travelers while categorizing premium travel as a luxury service.
Q5. How can frequent premium flyers manage higher costs?
Booking in advance, using loyalty programs, and leveraging corporate travel benefits can help offset rising costs.
Published on : 5th September
Published by : SMITA
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