Jet Fuel Hiked 5.46% for Second Month; Airlines Face Higher Costs
What Happened
Aviation Turbine Fuel (ATF) prices for domestic airlines have been increased by 5.46%, or ₹6.28 per litre, to ₹121.28 per litre, marking the second consecutive monthly hike. The increase comes amid rising global crude oil prices and geopolitical tensions, adding to operating cost pressures for airlines as fuel accounts for nearly 35-40% of their expenses.
Key Takeaways
The latest jet fuel price hike could put upward pressure on airfares and airline profitability, although the extent of any fare increase will depend on passenger demand, competition and route capacity.