SpiceJet Increases Airfare Following a Hike in ATF Price

spicejetAfter an all-time high increase in the price of jet fuel recently, domestic airlines in the country have raised their fares by 30%. Leading the bandwagon is a leading low-cost carrier (LCC) in the country – SpiceJet, which has increased its advance and spot purchase airfares by more than 25%. Other airlines, such as Jet Airways are planning to follow-suit shortly. The sudden price rise on flight tickets has been led by the increase in the cost of aviation turbine fuel (ATF) by 7%. This new cost revision has been done on the already hiked ATF prices of the July-September quarter.

 

No Escape from Hike in Airfare

The result of airfare hike has meant that a ticket on a Delhi-Mumbai flight now will cost about 10,000 INR which earlier was priced in the 6,000-7,000 INR range. Travellers making advance booking for the upcoming festive season are sure to feel the heat created by the jump in fares. According to industry experts, the hike in airfare makes no sense in the ongoing lean period; however, almost all airlines are finding it difficult to absorb the latest ATF price raise. It is but obvious to pass on the price burden on to flyers or else airlines could face a Kingfisher-like situation.

Meeting on ATF Sales Tax

The Indian aviation industry is to hold a meeting in the coming weeks to discuss the issue regarding high sales tax on ATF. This meeting is believed to be of political level, with both the governments of Mumbai and Delhi discussing on how to reduce sales tax at the Mumbai and IGI airports by 5% at least.

Travellers planning to book flights in advance, can log on to different travel websites, to get some discounts. On these websites, you can check for availability of cheap domestic air tickets for the upcoming festival season.

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