Airfreight rates likely to go up from July

Sending a courier or booking an airfreight is going to cost you at least 15% more from July, thanks to the spiralling oil prices. Passenger airlines have already announced a new minimum base fares for short and long term journey, as aviation turbine fuel (ATF) cost has gone. Generally, ATF constitutes 45% of an airline's operating cost.
"ATF hike will not only necessitate us to increase passenger ticket fares but also airfreight that we are carrying in our belly space. Airfreight rates will also go up by 15 to 20% as our operating cost are heading north with high oil prices," said a private airline executive.
He also indicated that airfreight rates to international sector will also shoot up. "We are waiting for the decision from other international airlines regarding the price hike," he added.
An Air India official said the carrier has not resorted to hike the air freight rates frequently similar to passenger fares. "But the situation has forced to do that. Along with ATF price hike, competition is also hotting up," he said.
30/06/08 Economic Times

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Categories: Cargo Jun 2008