New Delhi: With a straight hike again in the price of Aviation Turbine Fuel, ATF, on Sunday, Airlines are looking for increasing the airfares by 10-15%. The price of ATF has been on a sharp climb since August this year.
There was a direct increase on the jet fuel by 6 % on Sunday. Moreover, the hikes are coming at a time when the rupee is weakening against the US dollar.
After the latest price revision, ATF will now cost Rs 53,045 per kilolitre in Delhi, up Rs 3,025 per kl from Rs 50,020. This is the third consecutive monthly hike. Last month, the price was hiked by 4%.
According to a report by Times of India, an official of a full-service airline said: “We will take a decision shortly on fares. The operating cost has gone up substantially, and we have to pass on the same to flyers.”
In addition, from August 1 the government has started levying a regional connectivity cess of Rs 5,000 on each flight. Most airlines have transferred this cost to passengers.
It was due to the low crude prices till recently, airlines were able to offer low fares to passengers which had led to over 20% growth in domestic air traffic for several months in a row till this summer.