NEW DELHI: Air fares are set to rise sharply as jet fuel prices jumped 18% on Wednesday, marking the steepest-ever spike, amid the Russia-Ukraine conflict.
Since fuel makes up about 40% of operational costs for airlines, dearer fuel will affect an early recovery that was expected with the resumption of regular international flights later this month and the summer travel boom.
Kolkata will be the costliest airport for carriers to tank up at Rs 1,14,979 per 1,000 kilolitres or kl, followed by Chennai (Rs 1,14,133). The price in Delhi will be a tad lower (Rs 1,10,666), while Mumbai will have the cheapest aviation fuel (Rs 109,119).
This is the sixth increase in jet fuel prices since January, in line with crude’s rally. This is because the government does not intervene to cushion flyers since aviation is considered a domain of the well off.
IndiGo CEO Ronojoy Dutta said, “We have been in talks with the government to bring ATF under GST as it brings the benefit of input tax credit. We believe that such measures are needed now more than ever.”
Since fuel makes up about 40% of operational costs for airlines, dearer fuel will affect an early recovery that was expected with the resumption of regular international flights later this month and the summer travel boom.
Kolkata will be the costliest airport for carriers to tank up at Rs 1,14,979 per 1,000 kilolitres or kl, followed by Chennai (Rs 1,14,133). The price in Delhi will be a tad lower (Rs 1,10,666), while Mumbai will have the cheapest aviation fuel (Rs 109,119).
This is the sixth increase in jet fuel prices since January, in line with crude’s rally. This is because the government does not intervene to cushion flyers since aviation is considered a domain of the well off.
IndiGo CEO Ronojoy Dutta said, “We have been in talks with the government to bring ATF under GST as it brings the benefit of input tax credit. We believe that such measures are needed now more than ever.”