Airlines hike fares as ATF prices go up by 20 per cent

Mumbai: A hike in aviation turbine fuel (ATF) prices by up to 20 per cent for international and domestic flights by state-run oil marketing companies has driven up air travel cost – on both the domestic and international flights.

Air-India has already announced a hike in its fares by Rs300 to Rs550 with effect from June 3 while Jet Airways raised fuel surcharge by Rs150 per km for up to 750 km and by Rs250 per km for more than 750 km.

Indian, Deccan as also the smaller airlines like Kingfisher, Indigo and Spice Jet, are set to impose an additional fuel surcharge on all tickets with effect from the first week of June.

Oil marketing companies have hiked aviation turbine fuel prices for domestic carriers by around 20 per cent and for international carriers close to 12 per cent effective first week of June. ATF comprises over 40 per cent of the airlines' operating costs.

ATF prices have been raised between 18.2 per cent and 19.5 per cent in the four metro cities of Delhi, Mumbai, Kolkata and Chennai.

The revised ATF prices for domestic airlines will be Rs69,227 per kilolitre in Delhi, Rs76,626 per kilolitre in Kolkata, Rs71,759 per kilolitre in Mumbai and Rs75,603 per kilolitre in Chennai. This is the fourth hike in ATF prices since February 2007.

For international airlines, it will be $1,248 per kilolitre in Delhi, $1,291 per kilolitre in Kolkata, $1,242 per kilolitre in Mumbai and $1,244 per kilolitre in Chennai. ATF prices have gone up by 81-89 per cent for domestic airlines and by 62-80 per cent for international carriers.

The airlines at present impose over Rs2,800 in the form of taxes and surcharge over and above the cost of ticket. Domestic carriers charge Rs2,350 as fuel surcharge for flights beyond 750 km and Rs1,950 for short haul.