Big increase in jet fuel price adds to the woes of airlines

A steep increase in jet fuel prices by state-run refiners will swell the operating costs of Indian carriers at a time when they are struggling to reboot operations after a two-month halt due to the pandemic.

Aviation turbine fuel (ATF) accounts for 35-50% of the cost of running an airline in India. The flurry of price increases will further stress the balance sheets of airlines who are making desperate efforts to stay afloat.

“The price of ATF rose substantially during June, which is not a good sign, as airlines resumed domestic operations after two months of grounding on 25 May,” said a senior airline official, who didn’t want to be named.

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