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.