Airlines are staring at another rise in fuel costs after state-owned oil companies increased Aviation Turbine Fuel (ATF) prices by Rs 6.28 per litre.
This is the second month in a row that jet fuel has become more expensive. ATF now costs Rs 121.28 per litre, compared with Rs 115 earlier, marking a 5.46 per cent increase.
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The latest hike follows a Rs 5 per litre increase announced on August 1. In July, however, ATF prices had been reduced by Rs 5 per litre.
"ATF (Aviation Turbine Fuel) prices for domestic airlines increased by Rs 6.28/litre to Rs 121.28/litre from Rs 115.00," sources at state-run Indian Oil Corporation (IOCL) were quoted as saying by ANI.
The increase comes as airlines continue to deal with higher fuel costs amid the escalation of the Middle East conflict earlier this year. ATF prices have climbed sharply since then, putting additional pressure on airline operating expenses.
Jet fuel is a major cost for Indian carriers and typically accounts for around 35-40 per cent of their total operating expenditure. A sustained rise in ATF prices could therefore add to the financial pressure on airlines and potentially influence airfares.
