ATF price hike set to hurt aviation, travel rebound

The sharp increase in prices of air turbine fuel (ATF) is set to impact the rebound of the aviation and travel industry as it would result in fares going up, but not to the extent that it would keep airlines from recovering the cost of their operations.

“Increase in fuel prices and depreciating rupee are set to impact the airline sector hard, especially at a time the industry is trying to come out of the Covid-19 crisis. It is going to be a difficult time for us ahead,” said an airline executive, who did not want to be identified.