Airlines seek to increase fares as jet fuel prices rise again in March

Airlines seek to increase fares as jet fuel prices rise again in March

Mumbai-Delhi fares may go up by 15-20% as soon as mid-March, experts said, adding that increases are inevitable given the rise in global oil prices.





March 07, 2022 / 05:51 PM IST





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Airlines in India have once again urged the civil aviation ministry to increase caps on domestic fares, given the sharp rise in prices of aviation turbine fuel over the past two months and expectations that crude oil prices are expected to remain high due to the Russia-Ukraine conflict.

ATF prices, one of the biggest cost components for airlines, have climbed 26.4 percent, or Rs 19,508.25 per kilo-litre (kl), since December 15 in New Delhi. The latest increase of 3.22 percent on March 1 took ATF to Rs 93,530.66 per kl in the national capital.

Experts and industry officials expect airlines to hike airfares on popular tier-I routes by 15-20 percent by mid-March and by 20-25 percent on regional routes by the end of March.

“The airfare range for flying between Delhi and Mumbai is likely to rise from around Rs 2,300-13,000 currently to around Rs 2,900-15,000 by March,” a senior airline official said.

“Price hikes are inevitable – there is no way to refrain from