Jet hikes fuel surcharge by Rs 200
Jet Airways, which flies the highest number of domestic passengers in the country, increased the fuel surcharge on all its flights by Rs200 on Friday.mumbai Updated: Sep 17, 2011 01:06 IST
Jet Airways, which flies the highest number of domestic passengers in the country, increased the fuel surcharge on all its flights by Rs200 on Friday.
The increase in the fuel surcharge was announced owing to the hike in air turbine fuel (ATF) prices announced on Friday. ATF in Mumbai will now cost Rs58.45 per litre against Rs56.97 per litre earlier. The hike came a day after petrol prices were hiked from Rs68.33 per litre to Rs71.49 per litre. The surcharge will come into effect from Saturday on the airlines’ domestic and international flight tickets.
As fuel comprises 40% of an airline’s operating cost, an increase in ATF prices is bound to reflect on airfares, said industry experts. Experts ruled out any impact of the fare hike on the forthcoming travel season starting Diwali. “The demand is extremely high and the difference in fare is negligible. We do not expect any major impact on travel,” said Ankur Bhatia, executive director, Bird Group, an aviation consultancy firm.
“It is not clear why ATF prices have gone up as jet fuel is not related to petrol and diesel,” said Sudhakar Reddy, national president, Air Passenger Association of India.
The airline industry was expecting cheaper airfares this travel season after the IOCL and its sister retailers reduced ATF cost by Rs1.50 a litre last month.