Airline industry gets some relief as ATF price drops

Aviation industry got some relief from higher aviation turbine fuel (ATF) price, as aviation turbine fuel price was cut by 2.7 per cent in the wake of falling international rates.

This price reduction for jet fuel was Rs. 1,942 per kilolitre, which represent almost 2.7 per cent price drop to Rs. 68,086 per kl in Delhi, according to state-owned oil firms. After two consecutive monthly price hikes, this price reduction may bring some relief for aviation players as aircraft fuel forms around 35 to 40 per cent of total expenses.

At the same time, oil companies increased the price of subsidised LPG by Rs. 2.71 per cylinder to Rs 496.3.

On the first of every month, public-sector fuel retailers revise rates of ATF, LPG and kerosene-based on average global price and INR-USD exchange rate prevalent in the previous month.

With this positive development, the stocks of airline companies such as Indigo, Spice Jet and Jet Airways opened on positive note on Monday, however, due to falling broad market indices, the stock of these companies also dropped.