Airlines and passengers are feeling the impact of rising costs during the holiday season.
In December 2024, government oil companies (OMCs) raised the prices of Aviation Turbine Fuel (ATF), or aviation fuel.
The price of ATF has gone up by ₹1,318.12 per kilolitre, starting from December 1. This increase in fuel prices may also lead to higher airfares.
New ATF Prices in Major Cities
The prices of aviation fuel in the four main metro cities are as follows:
Delhi: ₹91,856.84 per kilolitre
Kolkata: ₹94,551.63 per kilolitre
Mumbai: ₹85,861.02 per kilolitre
Chennai: ₹95,231.49 per kilolitre
A Rising Trend in ATF Prices
This is the second month in a row that the price of aviation fuel has risen.
Last month, the price of ATF was increased by ₹2,941.5 per kilolitre. As a result, airlines’ operating costs are growing rapidly.
Potential Increase in Air Fares
Experts predict that airfares could rise by 10-15% due to the increase in fuel prices.
This could mean higher ticket prices for passengers during the upcoming holidays in December. Airlines are expected to adjust their fares to cover the added cost of fuel.
Reasons Behind the Price Increase
The rise in ATF prices is mainly caused by the fluctuation in international crude oil prices and the drop in the rupee-dollar exchange rate.
Since aviation fuel makes up about 40% of an airline’s total operating expenses, the increase in fuel prices directly affects ticket prices.
Airlines are facing higher operating costs, which may result in increased airfares.
Experts predict that airfares could rise by 10-15%, making tickets more expensive during the December holidays.
