The price of aviation turbine fuel (ATF) has gone up 7.5 per cent in September, signalling hard times for domestic carriers. The Rs 1,500 per kilolitre increase in ATF prices over August is the sharpest yet in this financial year.
The price of ATF stands at Rs 21,400 a kilolitre in September, compared to Rs 19,900 a kilolitre in August.
Domestic airlines Air Sahara and Indian Airlines do not, however, plan to increase air fares. ATF costs account for 30 per cent of the operating expenses of domestic airlines.
Reacting to the hike, UK Bose, chief executive officer of Air Sahara said,
