Bhutan national airline Drukair is considering increasing airfares during peak seasons

With aviation fuel prices continuing to surge worldwide, national airline Drukair is considering increasing airfares during peak seasons.

Earlier this year, Drukair committed itself not to increase airfares in 2011, despite rising aviation fuel prices. But this was at a time, when the rate of increase was only around 20-25 percent.

“It has increased by almost 45 percent over one year, but we haven’t increased our fares at all,” said the airline’s commercial manager, Tshering Penjore. “So there’s pressure on the management and we need to also rationalise the amount of increase,” he said.

Between 40-44 percent of Drukair’s operating costs is on aviation fuel.

“We may be forced some time or the other to have a fuel surcharge,” said Tshering Penjore. A fuel surcharge is when an extra cost is added to the airfare to cover the increased fuel price. So far, Drukair has been able to cover fuel price increases because of traffic increase. The airline experienced a 12 percent growth in traffic last year. The airline flew 132,675 passengers in 2010, compared to 118,084 in 2009.

Tshering Penjore pointed out that Drukair is currently still “trying to resist” any increase in airfare. He said that the airline is hoping to offset rising fuel costs by attracting more travellers, which should “mitigate” any increase in airfare.

He added that an increase in airfare would only be for the peak seasons. “We find it pertinent because that’s when demand is at its peak,” said Tshering Penjore. Drukair considers the months of March and April, and September and October as peak seasons. Tshering Penjore added that the rest of the year would see no increase in airfares. He said that Drukair would also continue to maintain its regular discount schemes for both tourists and local travelers.

Source: Kuenselonline