The dip in the Air Turbine Fuel (ATF) price and the continuation of this trend will benefit the aviation sector, the Civil Aviation Minister of India, Jyotiraditya Scindia has said. This would further have a good impact on airlines under pressure.
“Prices of the ATF have come down. I feel this trend will continue and the aviation sector would benefit. This will have a good impact on airlines which are under pressure. 50 per cent of their cost structure is of (based on) ATF,” Scindia stated.
On first August, 2022 the price of ATF in Delhi was Rs 1.21 lakh per kilo-litre, which was around 14 per cent lower than last month. He added that when the ATF price shot up three-fold the airfare was raised by just 20-25 per cent.
ATF prices have been coming down during the last few weeks after jumping to record levels, primarily due to the Russia-Ukraine war that began on February 24.
The Union Aviation Ministry had earlier last week said that limits imposed on domestic airfares will be removed from 31 August, 2022, after approximately 27 months. The ministry had imposed lower and upper limits on domestic airfares based on flight durations when services were resumed on May 25, 2020, after a two-month lockdown due to the COVID-19 pandemic.
