Airfares To US Spike Amid H-1B Visa Confusion

(MENAFN- Live Mint) Delhi: Airfares and last-minute bookings from India to the US spiked this week amid confusion over who the new $100,000 fee on H-1B employment visas applies to.

US President Donald Trump announced that all H-1B visa applications will require the fee starting 21 September . Soon after, American companies like Microsoft and immigration attorneys advised H-1B visa holders to return to the US before midnight on September 21 or risk being stranded. That triggered a scramble for flights to the US among those visiting home at the beginning of the festive season.

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There has been a notable increase in last-minute bookings to the US since Saturday morning, said a spokesperson of MakeMyTrip , India's largest online travel aggregator. This increase in bookings for same-day or next-day travel is atypical for a long-haul segment, the company said, without disclosing the percentage increase.

Rival Cleartrip saw a spike in fares.

“There has been a noticeable increase in airfares from major Indian cities such as Bengaluru, Delhi, and Mumbai to prominent US destinations like New York, Los Angeles, and San Francisco,” a spokesperson for Cleartrip , owned by e-commerce firm Flipkart, told Mint.“Over the past week, average ticket prices on these routes have risen by approximately 8-15%, with Mumbai to San Francisco reflecting the most significant hike."

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The spokesperson said that Cleartrip is monitoring developments in the new H-1B visa regulations for short- and long-term implications.“From a bookings point of view, we are seeing a substantial increase in demand for bookings to the US.”

Late on Saturday night, White House officials clarified that the new fee on H-1B visas was one-time, not annual, and was not applicable to existing visa holders. However, confusion persists.

This is already peak season for flights between India and the US, as students prepare to start the academic year in the US and people with families in India visit home for the festive season.

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“There has been a steady increase in ticket costs to the US with business class tickets ranging anywhere between ₹3 lakh and ₹4 lakh for a return flight,” said Radhika Khanijo, founder of Delhi-based luxury travel company Welgrow Travels.“An announcement like this, though, could trigger a further increase as well.”

Besides, those picked in this year's lottery system and granted a new H-1B visa are expected to start work from 1 October. Under the existing rules, these H-1B visa holders can enter the US up to 10 days before they start work (or by 21 September).

Soumya Gupta contributed to this story.

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