Unpredictable changes in global crude oil prices were compounded by high domestic tax regime on jet fuel in 2018-19 for the airlines industry, according to the Economic Survey.
Jet fuel or Aviation Turbine Fuel (ATF) accounts for a significant chunk of an airline’s operational costs.
The survey tabled in Parliament on Thursday also said the country’s scheduled domestic air transportation for passengers and goods has grown by 14 per cent and 12 per cent, respectively, in 2018-19.
“The demand and supply trends in civil aviation shows that passenger demand is higher than the seat supply,” it said.
