SpiceJet to raise fuel surcharge by Rs 200-300 in next few days

Low-Cost-Carrier SpiceJet will raise fuel surcharge on air tickets by up to Rs 300 after similar move by Jet Airways and Kingfisher Airlines, after last week’s rise in jet fuel prices. According to a Reuters report, the company said that it is looking at increasing the fuel charge by Rs 200 to Rs 300 in the next few days. Jet Airways and Kingfisher Airlines recently increased fuel surcharge by the same amount. The surcharge levied for travel on domestic sectors is increased by Rs 200 for routes less than 750 kms and Rs 300 for routes beyond 750 kms. However, state-run Air India has no immediate plans to raise fuel surcharge.

The higher fares come after state-run oil marketing firms recently raised the price of Aviation Turbine Fuel (ATF) for domestic carriers by 6.7 per cent. They had earlier raised fuel prices by ten per cent on April 1, 2009. ATF prices account for over 40 per cent of an airline's operating cost. SpiceJet shares were yesterday up 4.22 per cent at Rs 19.00. Jet Airways was up 5.72 per cent at Rs 211.75 and Kingfisher Airlines by 7.37 per cent at Rs 38.60.