Spice Jet, now Air India Hike Air Fares By 25%

Air India on Thursday hiked passenger fares by 23 to 25 per cent on all domestic routes, following a sharp increase in the price of aviation turbine fuel (ATF). The carrier may also raise fares on international routes.

"We have hiked fares by 23-25 per cent

on all domestic routes. This has been done to offset the recent increase in ATF price," an Air India official told IANS.

The hike comes a day after Jet Airways and SpiceJet announced similar hikes in their airfares.

Carriers have been forced to raise tariff to mitigate the impact of the sharp fall in the rupee value and a near 15 per cent spike in oil prices of late.

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 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.

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- Unknown Updated at: Thursday, September 05, 2013