Air fares expected to rise after increase in fuel surcharges
The price of jet fuel sold at Velana International Airport (VIA) in the Maldives has also been increased.
Airlines have begun increasing fuel surcharges following a rise in global oil prices linked to the conflict in the Middle East.
The increase in fuel charges is expected to lead to higher air fares. The price of jet fuel sold at Velana International Airport (VIA) in the Maldives has also been increased.
Several airlines have announced increases in fuel surcharges to cover higher operating costs. Among them is IndiGo, India’s largest airline, which said it has raised its fuel surcharge from today.
The airline operates flights between the Maldives and Indian cities including Bangalore, Cochin, Mumbai and Trivandrum.
Jet fuel represents the largest cost in airline operations. Industry data shows that fuel accounts for between 20% and 30% of airline operating costs.
Airline operating expenses increase as jet fuel prices rise. If oil prices continue to increase, air travel prices are expected to rise further.
IndiGo said in a statement that the increase in fuel charges is required to cover rising fuel costs.
Air India has also increased its fuel surcharge, with the fee reaching up to $200 for some destinations.
Malaysia Airlines and AirAsia have also indicated that fuel surcharges may increase if fuel prices remain high.
Global oil prices have risen in recent weeks following the war involving Iran, with crude oil prices exceeding $100 per barrel.
Refined oil products, including petrol and diesel, have also risen above $170 per barrel.
