Fuel prices up, air fares to follow

Mumbai: Air fares are set to go up again as airlines contemplate increasing the fuel surcharge in the range of Rs 150-200 per ticket. This is to offset the 3.3 per cent increase in jet fuel prices. On August 1, oil companies hiked jet fuel prices due to the steep increase in global crude oil prices that crossed over $78 a barrel.
This will be the first time that domestic airline companies will be increasing the fuel surcharge twice in a span of little over a month.
“We have not taken any decision so far but we will discuss about it in a day or two,” said Jet Airways Executive Director Saroj Datta.
“We are looking at it and will take a decision by tomorrow. If jet fuel prices go up every month, we cannot do much. We have to pass on the additional burden to passengers,” said Ajay Singh, director, SpiceJet.
But Paramount Airways has already decided to increase the fuel surcharge by Rs 100.
Indian Airlines executives said they were yet to take any decision.
02/08/07 Lalatendu Mishra/Hindustan Times

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Categories: General Aviation Aug 2007