AIR TRAVEL may become dearer as airlines are contemplating another round of fare hike after state- owned oil firms on Saturday hiked jet fuel price by two per cent on Saturday for the seventh time since October this year.
Airlines said fuel cost accounts for 40 per cent of their operating cost and so it becomes imperative for them to take note of it. The airlines are currently evaluating the impact of jet fuel hike and are expected to take a call on it shortly.
" We have not decided on fare hike yet. We will take into account other factors which govern the airline's market as well," said an airline official. Airfares were last increased from January 1 this month. Airlines had hiked fuel surcharge up by ` 200 per ticket after state- run oil firms hiked jet fuel prices by almost two per cent.
The rise in airfares through a hike in fuel surcharge came in the backdrop of over 30 per cent hike in fares during festive season in October- November. Besides aviation fuel, state- run oil companies on Saturday increased petrol prices by over ` 2.54 per litre on back of rising crude oil prices.
Source:- http://in.finance.yahoo.com/news/Airlines-hike-fares-once-yahoofinancein-596410275.html
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