Air India announced a hike of Rs 300 to Rs 550 in fares with effect from Tuesday (June 3) following an increase in the price of Aviation Turbine Fuel (ATF).
The decision was taken after Aviation Turbine Fuel prices reported an increase of 18% on Sunday (June 1) as compared to the prices in May 2008.
The airline will increase its fares by Rs 300 on all flights upto 750 kilometers and Rs 550 after that.
With the present hike, the fuel surcharge on short haul flights would go up to Rs 2,250 and on long haul flights it would be Rs 2,900 from Rs 2,350.
The aviation public sector undertaking had not increased its fares during the last fare hike in May last month when other major airlines had increased their prices by Rs 150 (short haul) and Rs 300 for long haul flights.
The other players are soon going to increase their fares on various sectors as ATF in Mumbai has gone upto Rs 71,759.06 per kilolitre from Rs 60,468.28.
The prices of ATF in New Delhi are pegged at Rs 69,227.08 against Rs 58,387.92.News source