Pvt airlines hike fares by 10%, IA may follow suit

In addition to increase in normal economy class and business class fares, there would be a proportionate increase in other fares like promotional, excursion and check fares. Tickets issued on or after October 14 will be at revised rates, irrespective of the date of travel, a Jet Airways official said.

Earlier this week, oil marketing companies hiked the aviation turbine fuel (ATF) prices by as much as five per cent on account of the rise in international crude oil prices. Aviation turbine fuel costs account for almost 30 to 40 per cent of the total cost of operations.

In a related development, Civil Aviation Minister Praful Patel said the government was considering allowing all airlines to hedge on fuel prices in a bid to stem the burgeoning bills of aviation turbine fuel. Air-India has already been allowed to hedge on ten per cent of the ATF it lifts from abroad with effect from January next year. ‘‘We may consider permitting other airlines to hedge in future. The fuel prices are continuously rising,’’ Patel told reporters in New Delhi.

Due to the rising crude prices, several global carriers have imposed fuel surcharges to offset the rise in fuel bill, which is expected to reach a whopping $97 billion in the near future. The total fuel bill in 2003 stood at $44 billion, according to estimates of the International Air Transport Association (IATA).