New Delhi: Airlines prefer to carry fewer passengers at higher fares than a full complement at discounted rates.
Airlines have raised fares 15-20 per cent in a matter of days siting a number of reasons, including the depreciating rupee, a close to 7 per cent hike in the cost of aviation turbine fuel, and privately managed airports raising their levies.
Explaining the rationale behind the recent fare hike, an official from a private airline said “low fares might help an airline get market share, but market share will surely not get money into the bank.”
Airlines will have to increase fares by another 10-15 per cent to be able to make money rather than just break-even.
06/09/13 Ashwini Phadnis/Business Line
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Airlines have raised fares 15-20 per cent in a matter of days siting a number of reasons, including the depreciating rupee, a close to 7 per cent hike in the cost of aviation turbine fuel, and privately managed airports raising their levies.
Explaining the rationale behind the recent fare hike, an official from a private airline said “low fares might help an airline get market share, but market share will surely not get money into the bank.”
Airlines will have to increase fares by another 10-15 per cent to be able to make money rather than just break-even.
06/09/13 Ashwini Phadnis/Business Line
