Mumbai: State-oil marketing companies hiked jet fuel price by 5.4% to Rs 49,287 per kilolitre from Thursday midnight, the fourth straight price hike in as many months.
Jet fuel price is now up 23.5% since January and coupled with weakened rupee, the move will pinch airlines. A modest hike in fares is now likely, said a source in a low-cost airline. Airlines have so far avoided increasing fares in view of increased capacity in the market. Also July-September is an off season for travel, but post the latest hike carriers are reviewing their fares.
An Air India spokesperson termed the latest price revision as unreasonable as petrol and diesel prices have been cut, reflecting a decrease in crude oil price. "The price hike will increase our monthly fuel bill by Rs 21 crore," said an Air India spokesperson.
IndiGo and SpiceJet did not respond to query while a Vistara spokesperson said: "Fares in the airline industry are not simply a function of input costs alone. Competition, price sensitivity of customers, and demand supply balance are also significant drivers of airfare."
01/07/16 Aneesh Phadnis/Business Standard
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Jet fuel price is now up 23.5% since January and coupled with weakened rupee, the move will pinch airlines. A modest hike in fares is now likely, said a source in a low-cost airline. Airlines have so far avoided increasing fares in view of increased capacity in the market. Also July-September is an off season for travel, but post the latest hike carriers are reviewing their fares.
An Air India spokesperson termed the latest price revision as unreasonable as petrol and diesel prices have been cut, reflecting a decrease in crude oil price. "The price hike will increase our monthly fuel bill by Rs 21 crore," said an Air India spokesperson.
IndiGo and SpiceJet did not respond to query while a Vistara spokesperson said: "Fares in the airline industry are not simply a function of input costs alone. Competition, price sensitivity of customers, and demand supply balance are also significant drivers of airfare."
01/07/16 Aneesh Phadnis/Business Standard
