News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

Rediff.com  » Business » ATF prices slashed, but will airfares drop?

ATF prices slashed, but will airfares drop?

Source: PTI
Last updated on: July 15, 2009 20:59 IST
Get Rediff News in your Inbox:
Oil companies have slashed Aviation Turbine Fuel (ATF) prices by Rs 2,221 per kilo litre with effect from midnight on Wednesday.

The state-run oil companies had raised jet fuel prices by over 6 per cent on July 1, the fourth hike in two months, after crude oil price at the global market hit a high of $72 per barrel.

Between May 1 and July 1, OMCs had raised ATF prices by nearly 22 per cent or Rs 6,943 a kl in Delhi, and by over 22 per cent or Rs 7,259 a kl in Mumbai.

Currently, ATF prices for Delhi and Mumbai are Rs 38,557.6 a kl and Rs 39,789 a kl, respectively.

All major carriers Jet Airways, Kingfisher Airlines, Air India and Spicejet increased their fuel surcharge by Rs 400 following a hike in ATF prices.

The ATF price cut will be a big relief for airlines, but will airfares be cut? The rise in ATF prices, which constitute about 40 per cent of an airline's operating cost, have hit domestic carriers badly.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!