Carriers leave fares unchanged despite 3% slide in ATF prices

Mumbai: Indian carriers are not in a hurry to cut fares, even after state run oil marketing companies announced a 3% cut in aviation turbine fuel (ATF) prices Sunday night, the first in seven months. Airlines like Jet Airways, Kingfisher Airlines and low fare carrier SpiceJet have not announced an immediate fare cut, since ATF cost has come down after 14 consecutive hikes in the past seven months.
In fact, ATF prices have risen 49% since October last year, which means the current price cut will not translate into much relief for airlines. Fuel expenses account for 40% of an airline’s operating cost.
A spokesperson from Jet, said, “There is no news on fare hikes from the airline.” Similarly, Kingfisher, SpiceJet, Indigo and GoAir have not announced any fare cut as yet.
17/05/11 Financial Express

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Categories: Indian Aviation- In General May 2011