The already turbulent aviation sector in India recently received another blow – this time with the hike in price of Aviation Turbine Fuel. The ATF, which is a major cost component for airlines, has been hiked by almost 50 per cent on June 1, 2020.
The cost of a kilolitre of jet fuel in June will cost airlines Rs 33,575 in comparison to Rs 22,544 in May — an increase of Rs 11,031 per kilolitre of ATF. The price of a kilolitre of ATF will cost Rs 33,575 in Delhi while the cost will rise to Rs 38,543 in Kolkata. In Mumbai, a kilolitre of ATF will now cost Rs 33,070. Like LPG, ATF rates are also revised by oil companies at the beginning of every month.
The fresh jolt to airlines could disrupt the aviation industry further as air travel remains muted in the wake of the coronavirus crisis in the country. International air travel continues to remain banned as part of the government’s fresh lockdown guidelines.
