Rising fuel prices, intense competition and inability to pass on spiralling expenses have been negatively impacting domestic Airlines I Mankind News
Know Why ,Your air travel will get more Costlier ?
Report Mankind News: As peak travel season is around the corner, Airlines are all set to pass on higher costs to passengers following the government's recent decision to hike customs duty on aviation turbine fuel.
As per Mankind News sources, the Airline companies will not make an upfront increase in the ticket fares. Instead, they will undertake several measures to increase their ancillary revenue.
Rising fuel prices, intense competition and inability to pass on spiralling expenses have been negatively impacting domestic Airlines.
The government last month decided to impose 5 per cent customs duty on ATF, which is a major component of an airline's operational costs.
Mankind News sources said that there are five areas under which Airlines are working to garnering more ancillary revenues. These include higher charges on flight cancellation, trip rescheduling, onboard meals, baggage fees and cargo charges or additional baggage charges.
In recent weeks, the airline industry had already indicated that air ticket prices could go up in October when the peak travel season begins.
The steep rise in fuel prices and fall in the rupee value are already putting acute pressure on profits of Airlines in the country. Sources said that Airlines cannot take the risk of passing the entire burden via air ticket hike, but such back-door measures will help them generate the much-needed revenue without hiking the yield.
Sources said that various Airlines that currently have an ancillary of 16 per cent, plan to increase it by 25 per cent or more.