Aviation Turbine Fuel (ATF) prices have been raised by Rs 16 per litre and prices are now at Rs 137 per litre from Rs 121 for domestic airlines, according
to the oil companies. The latest revision comes after ATF prices were raised by Rs 6.28 per litre, or 5.46 percent in September, following a Rs 5 per litre increase in August. ATF accounts for up to 40 percent of operating costs for airlines, making fuel prices a key cost factor for carriers. Experts believe the surge in Aviation Turbine Fuel (ATF) rates is likely to add further pressure on airline costs. ATF prices for domestic airlines have jumped Rs 16 per litre to Rs 137, after rising in August and September as oil prices have been elevated. Fuel typically accounts for around 35-40 percent of an airline's total operating costs,o making sustained ATF increases is a key concern. Analysts believe airlines may partially pass on higher fuel costs through higher airfares or fuel surcharges, although the extent will depend on competition, passenger demand and capacity. The impact could be more visible during the upcoming festive season, when demand is expected to rise. (With Inputs From Agencies)
