The two airlines have raised fares by finalising a new minimum basic fare for various sectors depending on the distance travelled.
For instance, for flights up to 750 km, the minimum basic fare will now be Rs 1,000. It will be Rs 2,250 for distances between 750 km and 1,000 km and Rs 3,000 for distances above 1,000 km. Air-India will hike fares from Friday while Jet Airways already hiked the fares on Thursday evening itself.
The move is to ensure that airlines do not sell tickets below cost to avoid escalating losses in view of high aviation turbine fuel prices.
There was no minimum basic fare for sectors earlier.
Air India officials said the hike in fares varied as per the sectors. “The fare hike of basic fares, which was earlier Rs 2,000 on the Delhi-Mumbai route, will now be Rs 3,000. But in some other sectors the hike is negligible,” said an Air India official. Kingfisher Airlines stated that a fare hike is imminent.
Budget carrier SpiceJet, which raised basic fares earlier this month, has now hiked its fuel surcharge amount by Rs 300 (for distances up to 750 km) and Rs 550 (for distances beyond 750 km).