Airline fuel surcharge may rise due to hike in ATF prices

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New Delhi/Bangalore, July 2

The fuel surcharge levied by the domestic airline sector is likely to see an upward movement, with the state-owned oil companies raising the aviation turbine fuel or jet fuel prices by 2.86 per cent.

Indications are that the aviation companies are informally talking about a possible increase in fuel surcharge.

According to industry sources, the fuel surcharge could see an increase of about Rs 50.

However, the players in the sector seem to be waiting for each other to make the first move.

Air Deccan is believed to be planning an increase in fuel surcharge by Rs 50 to Rs 1,000. Sources indicated that the ATF hike is likely to translate into a marginal increase in passenger tariff, depending on the sector.

Players are in the process of studying the impact and "based on the findings, a fare hike would be considered."

The increase in passenger tariff could range from 0.5 per cent to 1.5 per cent.

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