patrickwilliams
New Member
Hey everyone,
With the US officially removing the 25% tariffs on Indian agricultural goods, many are talking about trade benefits—but there's also an interesting angle related to aviation and flight fares.
Since a big portion of India–US cargo includes agricultural and perishable goods, reducing tariffs can increase cargo demand. When airlines carry more consistent cargo loads, their overall route profitability improves. This is important because:
While we shouldn’t expect immediate cheap fares, the long-term expectations are:
Plus, if trade flow picks up, airlines might add new gateways or strengthen existing ones, reducing price pressure on popular routes like NYC–Delhi, SFO–Bangalore, Chicago–Mumbai, and Toronto–Delhi (for carriers operating via US hubs).
So what do you all think—
Do you expect these USA tariff removals to eventually lower USA–India flight fares? Or will airlines mostly absorb the benefit without passing it on to passengers?
With the US officially removing the 25% tariffs on Indian agricultural goods, many are talking about trade benefits—but there's also an interesting angle related to aviation and flight fares.
Since a big portion of India–US cargo includes agricultural and perishable goods, reducing tariffs can increase cargo demand. When airlines carry more consistent cargo loads, their overall route profitability improves. This is important because:
- Cargo revenue helps airlines offset operational costs
- Better cargo demand can support more flight frequencies
- Increased stability on routes can encourage airlines to deploy bigger aircraft or reopen seasonal routes
While we shouldn’t expect immediate cheap fares, the long-term expectations are:
- More cargo = steady airline revenue
- Steady revenue = more predictable route planning
- More predictable route planning = better fare competition for travelers
Plus, if trade flow picks up, airlines might add new gateways or strengthen existing ones, reducing price pressure on popular routes like NYC–Delhi, SFO–Bangalore, Chicago–Mumbai, and Toronto–Delhi (for carriers operating via US hubs).
So what do you all think—
Do you expect these USA tariff removals to eventually lower USA–India flight fares? Or will airlines mostly absorb the benefit without passing it on to passengers?