
Fuel prices up, air fares to follow
Air fares are set to go up again as airlines contemplate increasing the fuel surcharge in the range of Rs 150-200 per ticket. This is to offset the 3.3 per cent increase in jet fuel prices. On August 1, oil companies hiked jet fuel prices due to the steep increase in global crude oil prices that crossed over $78 a barrel.
This will be the first time that domestic airline companies will be increasing the fuel surcharge twice in a span of little over a month.
On July 3, the airlines had increased the fuel surcharge by Rs 50, taking the total fuel surcharge to Rs 950. Apart from this, they also levy a congestion surcharge of Rs 150.
“We have not taken any decision so far but we will discuss about it in a day or two,” said Jet Airways Executive Director Saroj Datta.
“We are looking at it and will take a decision by tomorrow. If jet fuel prices go up every month, we cannot do much. We have to pass on the additional burden to passengers. How long will we go on bearing losses? But we will wait till others increase their fuel surcharge,” said Ajay Singh, director, SpiceJet.
But Paramount Airways has already decided to increase the fuel surcharge by Rs 100. “Our fuel surcharge will go up from tomorrow or the day after,” said M Thiagarajan, chairman, Paramount Airways.
Indian Airlines executives said they were yet to take any decision.
This time all the airlines are in the process of building a consensus and collectively deciding on the amount of surcharge to prevent migration of passengers to rival carriers.
“Nobody is in the mood to bear any further losses on jet fuel prices. In a scenario of consolidation, when some airlines are coming back to profit, it does not make sense to wait till jet fuel prices come down,” said an airline executive asking not to be identified.
Fuel constitutes about 42 per cent of the operating cost of an airline in India. According to aviation experts, a 1 per cent increase in jet fuel prices puts an additional cost burden of 1.5 per cent on airlines.

Iran rejects allegations linking it to blast outside Israeli embassy
- The Iranian embassy said it "strongly repudiates any unsubstantiated allegations or irresponsible comments in this regard and considers them as steps towards realising the sinister intentions of the enemies of Iran-India relations”.

‘Behave humanely with Rohingyas’, Farooq Abdullah tells Centre
- The Jammu and Kashmir administration during a verification drive on Saturday sent 169 illegal immigrant Rohingyas to a ‘holding centre’ after they were found without valid travel documents.

Inter-state boundary talks with Assam after election: Meghalaya CM Sangma

Punjab logs 1,239 new Covid-19 cases, tally nearing 190,000

Supreme Court stays demolition of Dargah Mubarak Khan Shaheed in Gorakhpur

News updates from HT: Dhinakaran's AMMK gives 3 seats to Owaisi's AIMIM

Unicef report on child marriages has a stark warning for India, 4 more countries
- The report said that closing of schools, economic stress, parental deaths and pregnancies due to the coronavirus pandemic could increase the risk of child marriage.

Women's Day: Thanks to liquor ban, women safe in Gujarat, says CM Rupani

Tripura royal scion’s party to go it alone in tribal council polls

President Ram Nath Kovind presents Baton of Honor to Kiran Bedi

No major report of discordant results reported by Covid-19 testing labs: Govt

Issues in Co-WIN, vaccine hesitancy caused low vaccination coverage, says Govt

Odisha forms task force to control wildfires as more forests start burning
- On Monday, Odisha reported 668 large forest fires.

Fire at Eastern Railway office in Kolkata, one injured
- The 13th floor houses the accounts office of the Eastern Railways.
