According to industry experts, a 1 per cent increase in the price of ATF results in an addition of Rs 10 crore to the fuel bill. Fuel costs account for 30 per cent of the operating expenses of domestic airlines and around 28-32 per cent of the air fare.
Airline industry sources said domestic players would have to pay Rs 50 crore more in fuel bills if ATF prices stayed at current levels for the remainder of the year. Internationally, ATF prices generally go up in winter and they are expected to increase further in December.
