Major airlines to raise fares by at least 10 per cent

Air travel is going to be dearer as major airlines have decided to raise the fares by at least 10 per cent besides increasing the fuel surcharge.

New Delhi: Air travel is going to be dearer as major airlines have decided to raise the fares by at least 10 per cent besides increasing the fuel surcharge. The move by Air India, Jet Airways, Spicejet and Kingfisher comes in view of rise in prices of aviation turbine fuel by over nine per cent in line with the increase in international crude oil rates.

Jet Airways has decided to increase the basic fare of economy and business class tickets by about 10 per cent from Saturday. It will also raise the fuel surcharge by Rs 150 on short-haul routes and Rs 350 on long-haul routes from the same day. Spicejet hiked fuel surcharge by Rs 150 on short-haul routes and Rs 350 on long-haul routes from today. Air India has decided to raise the basic fare on all routes by 10 per cent and levy a fuel surcharge but has not yet announced the date from which it will be effective.

Nation's largest fuel retailer, Indian Oil Corporation's official said, that the price of ATF in Mumbai has been hiked by Rs 5,276 per kl to 60,467.58 per kl.

The crude oil has touched USD 120 a barrel mark in the international markets, putting financial pressure on oil firms. Justifying the increase in fares, Jet Airways CEO W Prock Schauer said that the increase in ATF hits the airlines very hard. He acknowledged that the fare hike could slow down the growth rate of Indian aviation industry.(PTI)

Add to: del.icio.us Digg Technorati