New Delhi: Air India Thursday hiked passenger fares 23-25 percent on all domestic routes on the back of sharp jump in fuel price.
The fares on International route may also go high soon, informed an official of the state-run aviation company which is facing the sharp meltdown in business. The price of air turbine fuel (ATF) has increased 50-60%, which is the major cause of this hike, he added.
"We have hiked fares by 23-25 percent on all domestic routes. This has been done to off-set the recent increase in ATF price," an Air India official said.
The rupee depreciation is also big concern for the airline, said the official, as it has affected the margins of its international operations. "Going forward, there might be an upward revision in fares for international routes," the official said.
Currently, on domestic routes, Air India has a passenger load factor of 82 percent.
The official said the company was optimistic that it would maintain its market share despite the fare increase and that pre-booking by passengers had ensured a high load factor during the festive season.
05/09/13 News Track India
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The fares on International route may also go high soon, informed an official of the state-run aviation company which is facing the sharp meltdown in business. The price of air turbine fuel (ATF) has increased 50-60%, which is the major cause of this hike, he added.
"We have hiked fares by 23-25 percent on all domestic routes. This has been done to off-set the recent increase in ATF price," an Air India official said.
The rupee depreciation is also big concern for the airline, said the official, as it has affected the margins of its international operations. "Going forward, there might be an upward revision in fares for international routes," the official said.
Currently, on domestic routes, Air India has a passenger load factor of 82 percent.
The official said the company was optimistic that it would maintain its market share despite the fare increase and that pre-booking by passengers had ensured a high load factor during the festive season.
05/09/13 News Track India
