Hike in fuel surcharge pushes airfare up

Domestic airlines are increasing fuel surcharge that will increase the airfare by Rs 55 to Rs 200 following the price-hike in air turbine fuel (ATF).
Nepal Oil Corporation (NOC) has increased Rs 5 per liter in ATF on Wednesday, taking the ATF price to Rs 105 per liter. With this, the ATF price has increased by Rs 50 per liter in two years. Domestic airlines had increased the fuel surcharge up to Rs 775 following the increment of Rs 10 per liter in May last year.
Largest domestic airline Buddha Air has announced new airfare, which will be effective from Saturday whereas other airlines including Yeti, Guna and Agni are preparing to hike the airfare shortly.
“With the increment in ATF, fuel surcharge will increase in the range of Rs 60 to Rs 200,” executive marketing manager of Buddha Air Rupesh Joshi said.
However, another domestic player Yeti Airlines has not yet decided anything on increasing airfare so far. Agni Air and Guna Air officials are increasing their new airfare effective from Monday.
According to the regulations, airlines can increase fuel surcharge when ATF price is increased by more than Rs 4 per litre. Similarly, Civil Aviation Authority of Nepal (CAAN) reviews airfare every two years on the basis of inflation rate, fuel price and maintenance cost.