Rise in aviation turbine fuel price likely affect airfares?

Owing to sharp increase in aviation turbine fuel (ATF) prices every month since August, Airlines may hike airfares by 10-15%. Last Sunday oil marketing companies raised prices by 6%.

According to Times of India report, after the latest price revision, aviation turbine fuel will now cost Rs 53,045 per kilolitre in Delhi, up Rs 3,025 per kl from Rs 50,020. These hikes come at a time when the rupee is weakening against the US dollar.

Though no airline offially announced the hike, the twin impact of rising price of ATF and weaker rupee leaves them with few options but to raise fares.

“We will take a decision shortly on fares. The operating cost has gone up substantially, and we have to pass on the same to flyers,” said the official of a full service airline.

Besides, most airlines have transferred the cost of regional connectivity cess to passengers from August 1 which the government has started levying on each flights.

OneIndia News


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