Indian Airlines is planning a 10 per cent hike in fares soon. The airline plans to hike fares across all ticket categories, including economy, business and APEX.

Jet Airways would also match Indian Airlines' fares, a senior Jet Airways executive said.

This latest round of fare hikes come in the wake of the aviation turbine fuel prices being increased 12 per cent in March for domestic carriers.

"The constant hike in aviation turbine fuel in the last four months leaves the airlines with almost no choice but to increase the fares," official sources said.

Domestic airlines have been asking the government to bring down the excise duty of 16 per cent on aviation turbine fuel and also to rationalise sales tax rates across the states.

With the latest round of hikes, the price of an economy class ticket in the Delhi-Mumbai sector will cost Rs 7,271, as against the current Rs 6,610.

A business class ticket in the same sector will cost Rs 10,560, as against the present Rs 9,600.

A Delhi-Chennai economy ticket will cost Rs 10,796, as against the current Rs 9,815, while a business ticket will cost Rs 15,845, as against the current Rs 14,405.

The last significant surge in the aviation turbine fuel prices was in October 2002, which had witnessed a 10 per cent increase.

The three domestic airlines, Indian Airlines, Jet and Air Sahara, had followed up with an equal increase in their fares.

The aviation turbine fuel prices have increased by Rs 2,820 per kilo litre from Rs 22,380 in February to Rs 25,200 per kilo litre in March.

The prices have been constantly increasing from October 2002 to March 2003, with a dip of 7 per cent in December.

January and February witnessed a 5 per cent increase in the aviation turbine fuel prices.