Jet Airways, SpiceJet hike tariff and fuel surcharge

The unprecedented increase in the fuel prices, have forced Jet Airways and SpiceJet to hike the basic airfare by 10% and the fuel surcharge by Rs 350. This is the steepest hike in airline industry in recent times. The days of cheapest airline tickets are almost over, as other airlines are expected to follow suit soon. The hike was attributed to the recent increase in ATF (aviation turbine fuel) prices, which will take effect from May 1.

The increased air fare will be effective from May 3. Public sector oil companies have raised prices of ATF by around 9.5 per cent as global crude oil prices touched a record high of $119 a barrel earlier this week. Prices of ATF were raised by13 per cent in March. Hence, Airlines have no option but to go for a increase in basic air fare and fuel surcharge to avoid a huge loss.