AI announces hike in fares as ATF prices go up
Air travellers will have to pay more as Air India on Sunday, announced a hike of Rs 300 to Rs 550 in fares with effect from Tuesday following an increase in the price of Aviation Turbine Fuel (ATF).
The decision was taken after Aviation Turbine Fuel prices reported an increase of 18 per cent today as compared to the prices in May 2008.
Air India officials said that it would be increasing its fares by Rs 300 on all flights upto 750 kilometers and Rs 550 after that.
The prices would come in force from June three, the airlines officials said, adding that with the present hike, the fuel surcharge on short haul flights would go up to Rs 2,250 and on long haul flights it would be Rs 2,900 from Rs 2,350.
The aviation public sector undertaking had not increased its fares during the last fare hike in May last month when other major airlines had increased their prices by Rs 150 (short haul) and Rs 300 for long haul flights.
The other players are soon going to increase their fares on various sectors as ATF in Mumbai has gone upto Rs.71,759.06 per kilolitre from Rs.60,468.28. The prices of ATF in New Delhi are pegged at Rs.69,227.08 against Rs 58,387.92.
When contacted, a Jet Airways spokesperson said the company was studying the impact of the present ATF hike and would come up with revised fuel surcharge soon.
Other airlines including Kingfisher, Indigo, Spice Jet were also working on the hiked ATF. All these airlines had increased their prices in May 2008.