Domestic airlines are likely to increase ticket fares in the coming
weeks after the price of jet fuel or aviation turbine fuel (ATF) was
hiked on Sunday Oct 01,2017 by a steep 6 %
This was done citing firming of international rates.
The recent increase in the price of ATF is the third straight increase since August, the last being 4 per cent on September 1, thus adding to the economic burden on airlines.
According to a notification released by India Oil Corporation, ATF will now cost Rs 53,045 per kilolitre (kl) in Delhi, Rs 3,025 per kl more than Rs 50,020 previously.
ATF accounts for 50% of an airlines operational expenditure.
The hike in rates will also cut into the profit margins of carriers
This was done citing firming of international rates.
The recent increase in the price of ATF is the third straight increase since August, the last being 4 per cent on September 1, thus adding to the economic burden on airlines.
According to a notification released by India Oil Corporation, ATF will now cost Rs 53,045 per kilolitre (kl) in Delhi, Rs 3,025 per kl more than Rs 50,020 previously.
ATF accounts for 50% of an airlines operational expenditure.
The hike in rates will also cut into the profit margins of carriers
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