To cope up with rising fuel prices and falling yields, passenger fares need to be hiked by around 15 per cent, Boeing India President Dinesh A Keskar said here today.

"For this market to continue to do better, the fares must be raised and they must be raised to the tune of around 15 per cent," Keskar said in a press conference on the sidelines of the third edition of India Aviation 2012. 

"...If we don't do that (hike airfares)...we will continue to have this massive losses that are being faced by the carriers. And at some time, we will have difficulty in sustaining the health of the industry," he added.

Though a price hike may lead to fewer number of passengers, it will help regain the health of the industry, he added.

The global aviation industry's profit forecast has been steadily coming down and fuel price is one element that was affecting everybody, he said. "It (rising fuel prices) really is going to be a big issue for all airlines and we need to watch for that," he added.

Keskar further said Asia Pacific offered growth opportunities for the aviation market with 37 per cent of future sales coming out of Asia.

"The aviation market is bigger in Asia Pacific. This is the region where growth is coming from and future is looking better compared to United States and European countries which are having its own problems with debt-crisis in Greece," he added.

About 33,500 new airplanes valued at USD 4 trillion will be needed globally in the next 20 years and out of this India will account for USD 150 billion with 1,320 airplanes, Keskar said.