 "Jet fuel price hiked 9.2%")
Jet fuel prices were hiked 9.2% from Tuesday midnight in line with rising crude oil rates.
The price hike will hurt margins as airlines are not raising fares immediately. Capacity in domestic market is rising with IndiGo adding aircraft and airlines improving fleet utilisation. As such fares which are 15-20% lower on a year-on-year basis will remain subdued.
A kilolitre of aviation turbine fuel (ATF) will now cost Rs 46,729 in Delhi, up 9.2% over the last month.
While jet fuel price is still lower on a year-on-year basis, it has been inching up sequentially since January due to rising crude oil prices.