Fuel price hike: Domestic Airlines to hike fares

As a result of the latest hike in aviation fuel by state run oil marketing companies, domestic airlines are set to hike their air fares.

Taking the lead, Jet Airways has increased its fuel surcharge by Rupees 200 per domestic sector. This will be applicable on all flights of Jet Airways, Jet Airways Konnect and JetLite, for sale and travel effective beginning on Saturday.

The state-run Air India, SpiceJet, have however adopted wait and watch attitude. Fuel contributes nearly 35 to 40 per cent to the total operating cost of the airline.

When contacted, sources in the SpiceJet said no decision has been taken as of now over a possible fare hike on account of increased price of ATF.

The OMCs had increased aviation fuel prices by 2.5 per cent at Rupees 57,689 per kilolitre in the national capital in their fortnightly review of international oil prices.

The increase has come after two consecutive cuts on August 16 and Sep 1. However, industry experts believe that to offset the cost increase other carriers like SpiceJet and Kingfisher, are also expected to pass on the additional fuel cost burden to passengers.

Jet Airways, Kingfisher and SpiceJet, listed in the BSE Index, have reported losses for the quarter ending June in spite of double-digit increase in air traffic numbers.