Air fares may see 10-15 per cent hike - The New Indian Express

Air fares may see 10-15 per cent hike

Published: 04th September 2013 12:43 PM

Last Updated: 04th September 2013 12:43 PM

Air fares are likely to increase by 10-15 per cent from current levels in the immediate future following a steep hike in jet fuel prices, according to travel industry players.

"Fare hike is imminent. The only question is who takes the lead. I would expect a 10-15 per cent increase in fares in the coming days," said Travel Agents Federation of India (TAFI) immediate Past President Ajay Prakash today.

Prakash, who is the Chief Executive of Nomad Travels, said fares have already seen some traction in the last two days and "the trend is likely to continue".

Jet fuel (ATF) prices were hiked by a steep 6.9 per cent, taking the rate to Rs 75,031 per kilolitre (KL) from September 1. This comes on the back of two rounds of ATF price hike effected in July and August.

ATF prices were increased by 5.8 per cent on July 1 and by another 6.3 per cent on August 1.

"With the steep hike in air turbine fuel prices, the airlines are left with no option but to jack up the fuel surcharge to offset the increase," Travel Agents Association of India President Iqbal Mulla said.

Expecting an increase of up to 10 per cent in domestic fares, Mulla said the sharp decline in rupee value against US dollar and high jet fuel prices will have multiple effects on ticket rates.

Airlines Air India, Jet Airways, SpiceJet and IndiGo did not respondent to queries on the issue.

comments powered by Disqus

Disclaimer: We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the NIE editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.


Read More


Astrology


follow us Mobile Site iPad News Hunt Android RSS Tumblr Linekin Pinterest Youtube Google Plus Twitter Facebook