Air travel to cost a wee bit more

MUMBAI: Unable to bear the heat of rising aviation turbine fuel (ATF) prices, all domestic carriers, except Indian (Airlines) and Air Sahara, have decided to raise the fuel surcharge by Rs50 to Rs325. The fresh levy will be built into the fares from May 1.

On Thursday, Jet Airways became the first to announce an increase of Rs300 in its fuel surcharge across all routes to offset part of the rise in ATF cost. Kingfisher Airlines was quick to follow suit. “We have to be competitive (in the market),” chairman Vijay Mallya said.  

Budget carrier SpiceJet, which had brought down the levy in December to match the drop in global oil prices, raised it to Rs150 from Rs100 (for less than 1,000km) and Rs300 from Rs200 (for over 1,000km).

The airline will introduce the raise in the second week of May depending on which way ATF prices go. “This revision will absorb 2-3 per cent of our total ATF cost,” said SpiceJet CEO Siddhanta Sharma.

Air Deccan’s surcharge will go up by Rs275-325 on various sectors. Indian and Air Sahara spokesmen said they are yet to decide on the issue.

ATF prices have climbed roughly 10 per cent since January. Indian Oil’s ATF rate in the Mumbai market is hovering between Rs30,000 and Rs35,000 per kilolitre.

“It is likely to rise further at the end of this month,” said an oil company official. International carriers have also revised their fuel surcharges marginally by Rs225-675 ($5-15) on one-way tickets to various destinations.