Another hike in ATF price, airfares set to rise

IN THE 10th hike since the beginning of the year, state-owned oil marketing companies revised the price of aviation turbine fuel (ATF) by 16.3%, taking the cost of jet fuel in Delhi to a record high of Rs 1,41,232.87 per kilolitre. The rising jet fuel prices, combined with depreciating rupee, is set to increase the cost of operations for airlines, leading to an increase in airfares by up to 15%.

Aviation industry experts have pointed out that fuel cost is already at unsustainable levels and airlines have no option but to pass it on in the form of fare hikes. SpiceJet chairman Ajay Singh, in a statement, said they will have to pass on the increase in ATF prices to fliers, and that will lead to an increase in fares by up to 15%.