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Our Bureau

New Delhi , July 4

Domestic air travel will become a bit more expensive from July 7, as Jet Airways, Air Sahara, Indian, and Air Deccan, on Tuesday announced that they were increasing the fuel surcharge being levied on domestic air travel from Rs 300 to Rs 500.

While Jet, Air Sahara, and Indian, said that the hike would be applicable from July 7, Air Deccan is yet to decide on the date.

The continuous upward movement in fuel prices during the past four months has forced the domestic airline industry to increase the fuel surcharge for the second time this year.

In April the average price of aviation turbine fuel (ATF) in the domestic market was around Rs 38,000 a kilolitre, which touched Rs 42,000 in June, and has now gone beyond Rs 43,600.

The fuel surcharge was first levied by airlines in May this year, as the global increase in oil prices was affecting their profitability and operations. Fuel accounts for almost 35 per cent of their operating cost.

While there was no official statement from the other domestic airlines, they are also likely to raise the fuel surcharge soon. Officials of Kingfisher Airlines and SpiceJet said that they were examining the situation; a decision is expected in a few days.

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