Domestic airfares are going down in Nepal as of Sunday. Fuel surcharge was slashed following a drop in the price of aviation fuel.
The surcharge charge added to the cost of an air ticket could drop from Rs80 to Rs400. The Nepal Oil Corporation Thursday reduced the price of aviation fuel sold to domestic airlines by Rs10 per litre to Rs94.50 per litre.
Carriers were earlier required to revise the fuel surcharge when prices rise or fall by Rs4 per litre under the formula set by the Civil Aviation Authority of Nepal. A new provision allows airlines to revise the fuel surcharge immediately when prices rise or fall. The revised price fuel surcharge, however, should come into effect after 72 hours.
According to Tribhuvan International Airport (TIA), the country’s domestic passenger traffic grew 16.49 percent to 1.98 million during the period January-September 2018. The figure includes 33,996 passengers flown by helicopters and single-engine aircraft. Flight movement increased 3 percent to 66,453 flights.
In Nepal, there were 246 domestic flights daily on average. Airline officials said that fares remained subdued this year compared to a year ago.