Airfares to cost you more as aviation fuel price hikes by 6%

The airfares will pinch our pockets more and that is because of the third consecutive hike in rates of aviation fuel by 6%. Aviation Turbine Fuel, ATF rates have seen a continuous increase owing to the strengthening global crude oil prices. This has forced the Oil Management Companies to effect the price hike. Increasing steadily over the past few months the ATF prices have shot up by 12.8% from Rs. 47,013 by July end to Rs. 53 ,045 right now. Airfares have thus seen a consequent increase.  The steady price of airfares has not given way to prices pushing upward limits.

Not just the passengers and travelers but also the airlines are going to take a loss to their margins. The peak travel and holiday season in October to December will work against the airline because of the hiked prices of airfares.

Experts have observed that increase in prices and rupee depreciation will cut into profit margins for the air service providers. With the current trend of crude oil prices and rupee in international market the airfares will be hiked by minimum 5 to 6% for maintaining unit profitability.