Airlines could slip on rising oil

Bangalore: Soaring international crude prices may compel airlines to hike the fuel surcharge or embed the burden into basic fares.
For the past five months, aviation turbine fuel (ATF) prices have seen month-on-month dip, except for a slight rise in January and March. This had helped airlines to improve yields as they kept their surcharge constant at Rs 700 per ticket.
The trend of tumbling jet fuel prices now seem to be reversing with international crude prices galloping. March prices climbed by over 1.5% and as global prices reached a six-month high, surging above $66 a barrel (on Friday), it looks like April may also see a sharp rise in ATF prices.
It’s a bit early, but airlines are preparing to shield themselves against any rise in ATF prices beyond the tolerance level.
30/03/07 Praveena Sharma/Daily News & Analysis

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Categories: General Aviation Mar 2007