Business Standard
New Delhi, May 1: Owing to another rise in jet fuel prices this month, airlines, such as Spice Jet, have decided to hike the fuel surcharge levied by them on tickets by Rs 150 for short haul sectors (less than 750 kms) and by Rs 350 for long haul sectors (more than 750 kms).
The fuel surcharge for short haul routes now stands at Rs 1,950 while for long haul sectors it is Rs 2,350.
"This will lead to a 7-8 per cent increase in fares," said a Spice Jet executive. The budget carrier's hike comes into effect tomorrow itself. Kingfisher Airlines executives said that they are mulling a similar increase although they have not taken a decision yet.
That apart, full service carrier Jet Airways is putting an additional increase of 10 per cent for all its business and economy class fares in place across all sectors in the country.
Flying High
ATF prices (Rs/kl):
April March
Delhi 58,387.92 53,309.30
Kolkata 64,824.82 59,610.15
Mumbai 60,468.28 55,191.58
Chennai 63,227.62 57,821.62
"This was necessitated by the recent increase in ATF (aviation turbine fuel) prices. The increased fare will be effective May 3," said Wolfgang Prock Schauer, CEO, Jet Airways.
"The ATF increases since March 2008 have increased the fuel bill of all domestic airlines by $700 million on an annualised basis," he added.
Public sector oil companies, like Indian Oil Corporation (IOC), have raised prices of ATF by around 9.5 per cent as global crude oil prices touched record highs of more than $119 a barrel earlier this week.
"The prices have been revised in line with global prices," said a senior IOC official. The government-owned oil marketing companies have the freedom to charge market prices for ATF, the prices of which they revise every month.
ATF prices have been increased to Rs 58,387.92 per kl in New Delhi from Rs 53,309.30 per kl in March. In Mumbai, prices rose to Rs 60,468.28 per kl from Rs 55,191.58 per kl in March.
Prices of ATF were raised by around 13 per cent in March.