Jet Airways, Spice Jet hike fares by 25 per cent

Jet Airways and smaller rival Spice Jet have hiked air fares by a steep 25 per cent after oil marketing companies announced a steep increase in the price of aircraft turbine fuel (ATF).

Prices of ATF or jet fuel, which account for 40 per cent of airlines' operating costs, have increased by nearly 15 per cent so far this year.

"The airline has hiked its fares by 25 per cent with immediate effect," a Jet Airways source said on Tuesday.

The increase is on the total fares, which include fuel surcharge or base fare and other charges, according to airline sources.

The announcement by SpiceJet, India's second-biggest budget carrier, came late on Tuesday, after Jet Airways announced the fare hike.

Jet Airways said the fare hike also factors in a near 25 per cent fall in the rupee's value against the dollar and the 6.9 per cent hike in aviation turbine fuel announced recently, sources said.

Crude oil prices, which have been trading between $105 and $115 a barrel for the past few months, have spiked in the wake of the Syrian crisis.

Cash-strapped budget carrier SpiceJet, which has been put on a cash-n-carry mode by airport operators recently, also cited the same reasons for the fare hike.

Other airlines are also likely to follow suit in the near future.