Wednesday, August 28, 2013

Airlines hike fares as input costs soar

Mumbai: Airlines have begun hiking fares as rupee depreciation and rise in crude prices begins to pinch them. Jet Airways is imposing $50 surcharge on economy class fare on its Gulf flights and SpiceJet is considering hiking surcharge on all its domestic flights.
So far airlines have been shy of revising fares as the same could impact loads. Air fares are about 20% lower despite the rising costs. From Thursday Jet Airways began levying the additional surcharge on its flights to Dubai, Kuwait, Doha and other destinations. in the Gulf. The $50 dollar surcharge is being levied only on higher level economy class fares and till September 10. The reason for the surcharge could be two fold - demand for travel to Gulf is higher after the end of Eid holiday and rise in operating costs. Jet Airways did not respond to an email query on the issue.
A travel agent said 'Flights to the Gulf are going full. While the lowest one way Mumbai-Dubai fare comes around Rs 9000 only the higher level economy class seats are available now.  A one way ticket to Dubai on September 5 costs around Rs 25,000. Tickets to Doha too are not available for next few days.''
29/08/13 Aneesh Phadnis/Business Standard
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