The price hike in jet fuel resulted in the amendment of the fares of air travel and with reference to the amendment; Indian consumers are being expected to pay more for air travel. The jet fuel has been raised by 6%, and the crude oil has been increased to $100 per barrel. However, the aviation stocks have decreased by 3% to 5%.
Carriers said that considering the fuel prices, the fares will be increased by $10 to $15. The jet fuel prices are revised by the Indian oil companies on every 1st and 16th, which depends on an average international price in the previous fortnight.
The Chairman of Kingfisher Airlines, Vijay Mallya, said, "Kingfisher is passing the increase in fuel charges to the consumers via the fuel surcharge. I suspect most of the airlines are doing the same".
The fuel cost has increased by 11% in last six months and it is very hard for the airlines to catch up the speed of increasing fuel.
Meanwhile, Captain G. R. Gopinath, Chairman and Managing Director, Deccan Aviation, said that government should take some steps to shrink the outlay of aviation fuel. He said that only 2% of Indians are able to cope with the charges of air travel.
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