The Hindu Business Line : Flights costlier on ATF hike

New Delhi, March 1 Domestic flying could become more expensive in the next few days. With aviation turbine fuel (ATF) prices increasing by more than Rs 2,300 per kilolitre at the four metro cities, some airlines plan to pass on the burden to the passengers.

“We will take a decision on increasing fuel surcharge by Monday evening. The increase in fuel prices is around 5 per cent which is difficult to absorb,” said the Managing Director, Paramount Airways, Mr M. Thiagarajan.

However, sections in the industry feel that the increase in ATF prices is not too high and can be absorbed by the airlines.

On Saturday, Indian Oil announced that the per kilolitre price of ATF in Delhi would be Rs 47,048.86 up from Rs 44,716.49 charged during the previous month. In Chennai oil companies are to charge domestic airlines Rs 51,090.08 per kilolitre during the month up from Rs 48,548.82 charged previously.

At the moment, ATF accounts for between 30 and 35 per cent of the operating cost of most major airlines and with the global prices of oil rising airlines have been passing the increased burden on to the passengers.

The increase in fuel surcharge when it is announced would be the first this year. Last year the domestic airline industry raised the surcharge five times to offset the increasing cost of fuel. At the moment the surcharge charged by airlines varies from Rs 1,875 to Rs 2,025.

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