Mounting operating costs push up air fares

Sources say all the airlines except Air India hike fares

Domestic airlines have raised fares a day after aviation turbine fuel prices shot up seven per cent. Facing the twin challenges of slack demand and worsening operating environment, domestic airlines decided to increase fares by an average 20-30 per cent for the economy class from Tuesday.

Sources in Jet Airways and SpiceJet confirmed the increases were because of costlier fuel. GoAir and IndiGo officials didn’t respond to queries but travel industry sources said all airlines except Air India had raised rates.

The cheapest tickets on the Mumbai-Delhi route booked for travel two days later are now selling for Rs 9,500 from Rs 6,000-7,000 a few days ago. With the rupee falling 20 per cent against the dollar  and fuel prices touching a record high of Rs 75,000 a kilolitre in Delhi, airlines had little room to manage costs.