English
New Delhi, October 2: Air travel is likely to be costlier as airlines are mulling at 10-15 per cent hike in airfares due to increase in aviation turbine fuel (ATF) prices since August.
On Sunday, oil marketing companies raised prices by 6 per cent, the Times of India reported. Following the price hike, ATF will now cost Rs 53,045 per kilolitre in the national capital, up Rs 3,025 per kl from Rs 50,020. In September, the price was hiked by 4 per cent.
With none of the airlines coming on record, they said that the current situation leaves them with a few options but to raise fares. “We will take a decision shortly on fares. The operating cost has gone up substantially, and we have to pass on the same to flyers,” said the official of a full service airline.
The government has also started levying a regional connectivity cess of Rs 5,000 on each flights from August 1. And most of the airlines have transferred this cost to passengers.
Due to low crude prices till recently, airlines offered low fares to passengers which resulted in over 20 per cent growth in domestic air traffic for several months.
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