ATF: Airlines yet to decide on raising fares

The domestic airline industry has no immediate plans to either increase air fares or the fuel surcharge despite an over three per cent hike in the price of aviation turbine fuel (ATF) being sold to domestic airlines this month.

On Wednesday, Indian Oil Corporation announced that in August, domestic airlines would be charged Rs 40,388.40 per kilolitre of fuel (Rs 39,062.46 in July) at Chennai up from charged in the previous month. In Delhi, a domestic airline would be charged Rs 39,059.45 per kilolitre (Rs 37,799.54 in July).

Despite the latest increase in ATF prices, the spokesperson of Kingfisher Airlines, Indian and the low cost airlines SpiceJet, Air Deccan and IndiGo said that they were not looking to increase the fares or surcharges just yet.