AI hikes fares by up to Rs 550

The decision was taken after ATF prices reported an increase of 18 per cent today as compared with the prices in May 2008.

Air India (AI) officials said that it would be increasing its fares by Rs 300 on all flights up to 750 kilometers and Rs 550 for longer distances. The prices would come in force from June three, airline officials said, adding that with the present hike, the fuel surcharge on short haul flights would go up to Rs 2,250 and on long haul flights it would be Rs 2,900.

The aviation public sector undertaking had not increased its fares during the last fare hike in May last month when other major airlines had increased their prices by Rs 150 (short haul) and Rs 300 for long haul flights. The other players are soon going to raise their fares on various sectors as ATF prices in Mumbai have hit Rs 71,759.06 per kilolitre from Rs 60,468.28.

The prices of ATF in New Delhi are pegged are at Rs 69,227.08 as against Rs 58,387.92.

When contacted, a Jet Airways spokesperson said the company was studying the impact of the ATF price rise and would come up with the revised fuel surcharge soon.