The Hindu Business Line : Jet, Kingfisher hike fuel surcharge

Mumbai, Nov. 6 Jet Airways and Kingfisher Airlines as well their low-fare counterparts, JetLite and GoAir on Friday hiked fuel surcharge by Rs 100 for distances within 1,000 kilometres and Rs 200 for over 1,000 km.

ATF hike fallout

This move is consequent to the nine per cent increase in aviation turbine fuel charges on November 1 from the levels a fortnight earlier.

At present, ATF in Delhi costs Rs 39,474 per kilolitre while it is a tad higher in Mumbai at Rs 40,722 (per kl).

Earlier, the fuel surcharge for distances within 1,000 kilometres ranged from Rs 1,600-Rs 1,850 and Rs 2,200-Rs 3,250 beyond this limit.

The surcharge differs across carriers because of the cost structures they operate under.

Air India, Indigo and SpiceJet still have not made public any move to hike fuel surcharge though reports are doing the rounds that SpiceJet could implement it soon.

In any case, the others will follow suit because hikes are not done in isolation, and also this is not a cost that airlines would like to absorb.

Mr Mahantesh Sabarad, Senior Analyst, Centrum Broking, said Jet Airways had collected Rs 426 crore in the first quarter of this fiscal on account of fuel surcharge, which translates into Rs 4.7 crore daily.

Recent data for October shows that on an average, Jet Airways and JetLite together carried 35,400 passengers daily while it was 7,500 in the case of GoAir. In September, Kingfisher flew 27,200 passengers.

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