Jet fuel price increased by 6.5%; airfares may rise by up to 20%

Airfares are due to increase by up to 20 percent after the price of aviation turbine fuel (ATF), or jet fuel, was raised by 6.5% to Rs 65,340 per kilolitre on Wednesday.

The increase in ATF was declared by Indian Oil Corporation (IOC) on its website. The government-owned company had cut ATF price by 0.3% in April and raised the price by 0.8% in March.

Airfares could increase due to the peak season impact too. On an average, fares could increase by 10%, but in the low fare bucket, prices could soar by up to 20%, according to aviation industry insiders.

The increase in fares would be mainly for bookings made close to the date of travel, say within seven days, according to a senior airline executive. Fares for those flights may have gone up as much as 50% due to fuel and seasonality, he said adding that fares for travel beyond 7-15 days are still very low. He did not want to be named.

On a month-on-month basis, ATF prices were at Rs 61,450 per kilolitre in April.

Jet fuel prices are revised every month.