Accordingly air passengers may have to spend more as oil marketing companies have increased the price of aviation turbine fuel (ATF). Reportedly according to the notification by the Indian Oil Corporation ATF now costs Rs 63,472.22 per kilo liter in Delhi, up Rs 677 (over 1%) from Rs 62,795 per kl last month. Reportedly a similar hike in the prices was seen in Kolkata, Mumbai and Chennai.
Sharat Dhall, COO (B2C), Yatra.com said "The 1% increase in ATF price is expected to affect air travel especially ahead of the peak travel season". Furthermore the prices may fluctuate in short to medium term, but with capacity expansion underway there might be stabilization as we head further into the travel season and the prices are revised on the first day of every month.
Moreover Aloke Bajpai, CEO and Co-founder, Ixigo, said, "With peak summer travel season round the corner and an ongoing capacity crunch due to grounding of planes, hike in ATF can lead to an increase in last minute fares and aggravate the increasing airfare situation seen since February." Bajpai added "But average domestic fares might normalize and even dip 15-20% if attempts to get some grounded planes operational come through”.
