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Air fares likely to go up by 10 percent after jet fuel price hike
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Mumbai: Air fares are likely to increase by 10 to 15 per cent following a steep hike in jet fuel prices, according to the travel industry.
"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 Ajay Prakash, the former president of Travel Agents Federation of India (TAFI).
Mr Prakash 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 from September 1. This comes after two rounds of ATF price hike 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, Mr Mulla said the sharp fall of rupee 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 hike of air fares.
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