NEW DELHI: The Russia-Ukraine conflict is set to have a negative impact on oil-dependent aviation and auto sector. For airlines, ATF or jet fuel accounts for up to 40% of operating costs. At Rs 90,519.8 and Rs 88,987.2 in Delhi and Mumbai, respectively, the prices of jet fuel is already at a record level and a further increase will be a very unwelcome sign for the industry as well as consumers.
“Brent crude prices have averaged at about $90 per barrel so far in Q4, as against $79 per barrel in Q3, and is expected to go up due to Russia-Ukraine tensions. This will have an impact on domestic airlines’ CASK (cost per available seat kilometres) which has just started to see recovery from the third wave of Covid-19,” said a senior aviation analyst.
