Indian fares to be hiked by Rs 300

State-owned Indian (formerly Indian Airlines) on Wednesday said it has introduced a fuel surcharge of Rs 300 for travel on domestic sectors due to steep hike in aviation turbine fuel prices.

"The surcharge is applicable on all tickets issued or re-issued on or after May 4, 2006, against both INR and USD tariff for travel on domestic sectors," the airline said.

The Rs 300 per flight coupon will be applicable on all types of journeys in both executive and economy class and will be applicable on all passenger types including infants, it said. However, frequent flier tickets will be exempt from the surcharge, it added.

The ATF price increased by more than 10.6 per cent during this month with the average per kilolitre price for the month touching Rs 41,950 from Rs 37,900 charged last month.

Indian's fuel bill during the last fiscal stood at Rs 2,300 crore (Rs 23 billion) and increase in ATF prices had brought an annual financial burden of Rs 400 crore (Rs 4 billion) for the airline.

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