Indications of a 10% hike in air travel fare

A claim of Delta Airlines, a global airline

Atlanta (US) – Delta Airlines, a Global airline, has warned that rising oil prices could result in a 10% hike in airfare, due to the war between Russia and Ukraine. Oil prices are reported to be the highest in 14 years since the war began. Major airlines such as Emirates, Japan Airlines, and Air Asia have already increased fares by imposing surcharges. Ed Bastian, head of Delta Airlines said, Ryanair, Europe’s largest airline, has also signaled an increase in airfares.

Airline giant Delta warns oil increases mean higher ticket prices https://t.co/fKG6Fbr8C8

— BBC News (World) (@BBCWorld) March 18, 2022

In 2019, before the coronavirus epidemic, the number of passengers on Delta Airlines was more than 20 crore. Considering the number of passengers, the establishment is the second-largest airline in the world.

What will be the effect on India ?

Oil companies in India have hiked the price of aviation turbine fuel (ATF) by 18% on 16th February, signalling a rise in airfares in India. The price of ATF has gone up six times in the last two and a half months and the total price has gone up by as much as 50%. Petrol and diesel prices have not increased in the last four months due to the elections. Therefore, the ATF prices rose sharply.

According to Ronojay Dutta, CEO of IndiGo Airlines, crude oil prices have risen to a 7-year high at $140 per barrel. Therefore, ATF has become very expensive. As the price of ATF affects 45% of the cost of air travel, air travel will become more expensive.