Airlines may go for another round of fare hikes as crude prices bite
Airlines may go for another round of fare hikes to offset the cost of rising fuel prices, a senior executive of a private airline said on Wednesday.
This was in response to state oil marketing companies decision to increase the price of aviation turbine fuel by 18 per cent to record Rs 1.10 lakh for a kiloliter. Fuel accounts for over 40 percent of airline’s expenses and the latest jet fuel price hike will increase overall expenses of airlines by 7-8 per cent.
The latest hike in jet fuel price comes against the backdrop of Russian invasion of Ukraine. Russia is the second largest exporter of crude oil with a global share of 11-12 per cent. However, the country is now facing sanctions from multiple governments making trade deals difficult.
