Steep rise in ATF prices to hurt airlines and passengers amid pandemic
New Delhi: The steep hike in prices of aviation turbine fuel (ATF) at major Indian cities, despite a fall in global crude prices, is set to hurt airlines as rising costs will add to their woes amid tepid demand due to the covid-19 pandemic.
Aviation turbine fuel accounts for about 35-50% of airlines’ total costs. At a time when domestic airlines are struggling to keep their costs down, the steep rise in ATF prices will further stress airlines’ finances.
“The price of ATF rose substantially during June, which is not a good sign, as airlines resumed domestic operations after two months of grounding on 25 May,” said a senior airline official, who didn’t want to be named.
