Airfares set to go up across the board
Domestic airlines are set to increase fuel surcharge by Rs 50. This will take the fuel bill in a ticket to Rs 950.
By TNN |
NEW DELHI: Domestic airlines are set to increase fuel surcharge by Rs 50 in July to counter rising jet fuel price. This will take the total fuel bill in an air ticket to Rs 950.
"We have decided to up fuel surcharge by Rs 50 from July 3," Jet Airway CEO Wolfgang Prock-Schauer told ET.
Both Kingfisher and Air Deccan are also upping their fuel surcharge by similar amount from July 4. "We will take a call over the next few days," said a spokesperson of low-cost carrier SpiceJet. Senior executives of other airlines also indicated that there may be a marginal hike in fuel surcharge. Airlines had effected a hike in fuel surcharge in May this year by Rs 150 to Rs 900.
The latest round of hike follows the announcement of new aviation turbine fuel (ATF) rates for the month by state oil companies which are around 2.86% more than in June, in line with international oil prices.
ATF rates have been on a roller-coster. They went up in January, fell in February and rose again for three consecutive months in March, April and May, followed by a drop in June.
Oil marketing companies come out with jet fuel rates every month.
With effect from July 1, ATF prices in Delhi were increased to Rs 37,799.54 per kilo litre from Rs 36,746.53 per kilo litre. In Mumbai, the prices went up by Rs 1,088.56 per kilo to Rs 39,062.46 per kilo litre.
The tax and surcharge component in air fares have zoomed in recent months. Currently, air passengers pay anywhere around Rs 1,300-1,375 as taxes and surcharge, over and above the basic fares advertised by airlines.
"We have decided to up fuel surcharge by Rs 50 from July 3," Jet Airway CEO Wolfgang Prock-Schauer told ET.
Both Kingfisher and Air Deccan are also upping their fuel surcharge by similar amount from July 4. "We will take a call over the next few days," said a spokesperson of low-cost carrier SpiceJet. Senior executives of other airlines also indicated that there may be a marginal hike in fuel surcharge. Airlines had effected a hike in fuel surcharge in May this year by Rs 150 to Rs 900.
The latest round of hike follows the announcement of new aviation turbine fuel (ATF) rates for the month by state oil companies which are around 2.86% more than in June, in line with international oil prices.
ATF rates have been on a roller-coster. They went up in January, fell in February and rose again for three consecutive months in March, April and May, followed by a drop in June.
Oil marketing companies come out with jet fuel rates every month.
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With effect from July 1, ATF prices in Delhi were increased to Rs 37,799.54 per kilo litre from Rs 36,746.53 per kilo litre. In Mumbai, the prices went up by Rs 1,088.56 per kilo to Rs 39,062.46 per kilo litre.
The tax and surcharge component in air fares have zoomed in recent months. Currently, air passengers pay anywhere around Rs 1,300-1,375 as taxes and surcharge, over and above the basic fares advertised by airlines.
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