Despite reduced ATF (Aviation Turbine Fuel) prices, to meet out increasing losses airlines are expectedly going to increase air fare soon. Admittedly, this air fare hike is seventh air fare hike in this year. Initiating the air fare hike, Jet Airways CEO Wolfgang Prock-Schaeur said that there would be a single digit hike and not a huge one.

 

According to Wolfgang, despite the reduction in ATF prices, all airlines are still making losses and need improved revenues, and for that matter air fare hike is pertinent. Further he said that most airlines are witnessing average load factors of less than 50% and there is still overcapacity. He cautioned that Jet Airways would be careful not to introduce too many flights into the system this winter.

 

According to aviation experts, the single digit hike in air fare by Jet Airways would be followed by similar steps from other airlines. On the other hand, the soaring air fare may force air travelers to opt for other cheaper modes of transportation. Indian Railways has already come up with lucrative plans to attract frequent travelers and airlines may get a tough competition from Railways.