Jet fuel price hiked by 9.2%, air travel set to cost more | business | Hindustan Times
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Jet fuel price hiked by 9.2%, air travel set to cost more

business Updated: Jun 02, 2016 06:31 IST
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NEW DELHI: Aviation turbine fuel (ATF) or jet fuel price was on Wednesday hiked by a steep 9.2%, while that of non-subsidised cooking gas was raised by Rs 21 per cylinder. ATF price in Delhi was increased by Rs 3,945.47 per kilolitre to Rs 46,729.48 per kilolitre. Similarly, non-subsidised cooking gas (LPG) will now cost Rs 548.50 in Delhi, against the previous Rs 527.50. Jet fuel constitutes over 40% of an airline’s operating cost, and the latest price increase will add to the financial burden of carriers. “Yes, fares are likely to go up,” said an Air India official, who did not wish to be named. “Fares had fallen in the past one year but the increase in fuel prices by 35% over the last three months consecutively is going to erode the profitability of airlines.”

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