Government Warns of April 1st Airfare Hike Amid Fuel Price Surge
Union Civil Aviation Minister Ram Mohan Naidu has warned of April 1st fare increases for airlines due to rising aviation turbine fuel (ATF) prices, a major component of airline operations. Discussions with airlines are ongoing and safety concerns remain one of their priorities.
Highlights
- •Union Civil Aviation Minister Ram Mohan Naidu warns of an April 1st airfare hike amid skyrocketing ATF prices.
- •Major domestic carriers like Air India, Air India Express, and Akasa Air have implemented surcharges to mitigate rising fuel costs.
- •Government discusses with airlines to address financial strain without compromising flight safety in the Middle East
- •Regular petrol and diesel prices remain stable as higher premium petrol rates are a result of global oil price hikes amid conflict concerns.
Union Civil Aviation Minister Ram Mohan Naidu has cautioned airlines about impending new cost pressures starting April 1st due to rising aviation turbine fuel (ATF) prices. ATF constitutes up to 45% of an airline's operating expenses and any increase leads to a direct rise in ticket prices.
As highlighted by NDTV, the minister mentioned that ATF prices are set on the first day of each month, thus suggesting potential hikes from April onwards. Naidu also indicated ongoing discussions with airlines and various ministries. He emphasized that while his department is dealing with airline financial struggles, their primary concern remains ensuring safe operations in the Middle East.
In addition to these measures, major domestic carriers such as Air India and Air India Express have implemented fuel surcharges ranging from Rs 399 to cover rising fuel costs. Similarly, budget airline Akasa Air has also introduced a corresponding fuel charge.
Naidu stressed that the government aims to explore best options for passenger benefits amidst this increasing cost burden. Meanwhile, regular petrol and diesel prices are expected to remain stable despite higher premium petrol costs amid global oil price hikes due to conflicts in the Middle East.
