New Delhi: Indian Airlines and Alliance Airways today (June 16, 2004) announced a 10 per cent hike in their fares with effect from June 21 due to a continuous rise in the prices of Aviation Turbine Fuel (ATF).

An Indian Airlines spokesperson said that the increased fares will be effective on all tickets issued on or after June 21 but shall not affect the confirmed tickets issued on or before the cut-off date.

The increase was necessitated due to a spurt in global crude prices that has added Rs 200 crore more to Indian Airlines' and its subsidiary Alliance Air's fuel cost, than the budgeted estimate for 2004-05 fiscal, he said.

The ATF price has shot up from Rs 21,530 per kilolitre (KL) in March this year to Rs 26,000 this month, he said and added that in February this year, the price stood at Rs 23,130 per KL and zoomed to an all-time high of Rs 26 from the anxious public as well as the media persons.

Civil Aviation Minister Praful Patel had said yesterday that he would be meeting Petroleum Minister Mani Shanker Aiyar next week on the disparity on local taxes on ATF.