As per an IATA report, a sharp rise in the price of aviation fuel due to the current political crisis in Egypt and fears of a domino effect on other oil-producing countries in the region is likely to lead a hike in air fares.

The recent sharp rise in fuel prices, at a time when load factors remain higher, will put further upward pressure on both fares and yields. The Middle East political crisis has pushed the oil prices close to USD 100 a barrel and jet fuel to USD 113 a barrel, considerably higher than the USD 91 per barrel average for 2009.