State-run oil companies raised jet fuel prices for international airlines by 5.33% on Friday, the second hike since April 1, even as domestic airline fares came under pressure from the cumulative impact of rising fuel costs and airspace disruptions.
Aviation turbine fuel prices for international carriers were raised by $76.55 per kilolitre to $1,511.86 per KL in Delhi, home to India’s busiest airport. There was no change in Aviation Turbine Fuel (ATF) prices for domestic airlines.
Earlier this week, the Federation of Indian Airlines, representing Air India, IndiGo and SpiceJet, warned the civil aviation ministry of flight cancellations in a letter saying airlines were on the verge of “stopping operations.”
Indian airlines are entering a difficult phase as higher international airfares, rising fuel costs and weaker overseas demand squeezed profitability, with stress likely to persist for at least two quarters.
