Fuel prices turn heat on air fares again

Mumbai: Passengers looking for bargain air-fares for the holiday season had better grab their tickets soon. Domestic airlines are set to increase air-fares, mainly by cutting down their low-priced tickets. The revision is prompted by an increase in aviation fuel prices by the oil companies. Fuel prices went up 4% from Sunday.
They have however, decided not to increase the fuel surcharge, that is currently being charged separately from passengers. However, several international carriers have upped the fuel surcharge in response to the firm oil prices.
``Fares could harden up to 10% higher than current levels as margins come under pressure,’’ airline sources said.
International price of aviation fuel is now around $76 per barrel, much higher than the $60 levels two months ago. Fuel price comprises the highest component of an airline’s operating costs.
03/04/07 Economic Times

To Read the News in full at Source, Click the Headline

Categories: General Aviation Apr 2007