Will oil price rise affect air fares? Here’s what experts say

The rise in oil prices will increase costs for airlines, but it is too early to assess the impact of sudden increase in prices on airfares, according to industry stakeholders.

Crude prices have jumped after drone attacks on two oil facilities in Saudi Arabia, which accounts for around 10 per cent of the global oil production.

A Vistara spokesperson said airfares are based on multiple factors such as demand, supply, competitive intensity, and do not have direct linkage to specific costs.