Thursday, August 10, 2006

Airlines recover 80% of ATF costs from fuel surcharges

Mumbai: Airline companies have been able to recover upto 80-90% of their aviation turbine fuel (ATF) expenses from their passengers, ever since they hiked fuel surcharges to Rs 500 in July from Rs 300 in May.
With airlines planning to hike fuel surcharges to Rs 650 effective Tuesday (August 8), they are expected to recover a still larger portion of their fuel costs, although not completely owing to rising ATF prices.
Air Deccan director finance Mohan Kumar told FE, "We are able to recover 90% of our jet fuel expenses with the increasing fuel surcharge levied on air tickets."
"We will be able to recover about 80% of our ATF expenses," said SpiceJet director Ajay Singh.
Indian Airlines CMD V Trivedi had hinted last week that although the carrier was expected to take a hit of Rs 360 crore owing to ATF price hike, it will be in a position to recover Rs 320 crore by way of fuel surcharge.
10/08/06 Neelasri Barman/Financial Express
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