With a nearly 15 per cent hike in oil prices and a fall in rupee value, Air India on Thursday joined other airlines in raising its fares with its officials saying these were being increased to the levels that were in force two-three months ago.
Air India and some other airlines had announced special fares in June, which were 10-15 per cent lower, to attract more passengers.
“We are restoring the fares to the normal levels which existed in June,” airline sources said, adding that these special fares were being pulled out in view of major increase in jet fuel prices.
Air India’s move came a day after Jet Airways and no-frill carrier SpiceJet hiked fares by a steep 25 and 30 per cent respectively to mitigate the impact of the sharp fall in the rupee value and the almost seven per cent rise in oil prices. The hike by the airlines was generally in the base fares and not on the fuel surcharge.
International oil prices have been trading between $105 and $115 a barrel since the past few months and has seen more upward spurt following the Syrian crisis.
Jet fuel prices were hiked by a steep 6.9 per cent, taking the rate to Rs. 75,031 per kilolitre (KL) from September 1.
This hike had come on the back of two rounds of aviation turbine fuel (ATF) price hikes effected in July and August by oil marketing companies. ATF prices were increased by 5.8 per cent on July 1 and by another 6.3 per cent on August 1.