Airlines in India raise fares on rising fuel costs
NEW DELHI/MUMBAI (Reuters) - Low-cost carrier SpiceJet and state-run Air India are raising fares following rising jet-fuel prices, while Jet Airways has set minimum airfares for certain routes, officials said. SpiceJet is increasing airfares by 300 rupees on the short sectors and by 550 rupees on the long sectors, effective June 20, Chief Financial Officer Partha Sarathi Basu told Reuters over the telephone.
Basu also said the firm was working on pruning services in loss making routes and cutting down on flights “wherever we are not making money.”
But no decision had been taken yet on how many routes to be cut, he said.
Air India is also increasing fares on distances varying from 750 km, 750-1,000 km, and over 1,000 km, effective June 20.
“The quantum of increase would vary within the slabs for different sectors, depending on their current fares,” executive director of corporate communications, Jitender Bharghava, said.
Top private carrier Jet Airways has set a minimum fare of 1,000 rupees for routes up to 750 km and 3,000 rupees for routes over 1,000 km, which is already in force, a spokeswoman said.
The Deccan Aviation-Kingfisher combine has not yet hiked fares.
“We are evaluating the options and we will take a view shortly,” a spokesman for the airline said.
Fuel makes up close to 45 percent of an airline’s operating cost, and the benchmark domestic price of aviation turbine fuel has risen nearly 46 percent since January to above 66,000 rupees a kilolitre as the cost of crude oil has surged to record highs.
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All the airlines has increased fares on rising fuel costs.Spice Jet and state-run Air India are raising fares following rising jet-fuel prices, while Jet Airways has set minimum airfares for certain routes.
subhash pandey
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