Kathmandu, April 14 -- Domestic airlines have started losing passengers in droves after ticket prices spiked following the hike in aviation fuel.

Nepal's largest private operator, Buddha Air, said its daily passenger numbers have dropped by 1,500 following the fare hikes. The airline previously carried around 8,000 passengers a day.

"We have cut at least 25 percent of flights per day due to low occupancy," said Birendra Bahadur Basnet, managing director of Buddha Air.

"Fuel alone used to account for 25-30 percent of the airline's total costs. Now, it's 50 percent," he said, adding that declining passenger traffic triggered by high fuel costs has eroded profits across the industry.

According to Basnet, airlines are facing a double wham...