Cheaper air travel: Airlines hit hard as ATF rates increase from December 1, 2024
ATF price: The festive season brings a shock of rising costs for airlines and passengers as government oil marketing companies (OMCs) have announced an increase in Aviation Turbine Fuel (ATF) prices. Effective December 1, 2024, ATF rates have been increased by Rs 1,318.12 per kilolitre, which is expected to increase airfares, making air travel more expensive during the festive season.
Revised ATF prices
According to government data, the prices of Aviation Turbine Fuel (ATF) in the four major cities of the country are as follows:
Delhi: Rs 91,856.84 per kilolitre
Kolkata: Rs 94,551.63 per kilolitre
Mumbai: Rs 85,861.02 per kilolitre
Chennai: Rs 95,231.49 per kilolitre
Prices were increased last month
This is the second consecutive month of increases in Aviation Turbine Fuel (ATF) prices. Last month, on November 1, ATF rates were increased by Rs 2,941.5 per kilolitre. As a result, the operating costs of airlines are increasing rapidly.
Airfare may see an increase
Experts believe that air fares can increase by 10-15 percent. As a result, passengers may face higher ticket prices during the upcoming holiday season in December. Airlines may increase fares due to these increases, resulting in higher costs for travelers.
What causes price increases?
The increase in ATF prices is due to fluctuations in international crude oil prices and depreciation in the rupee-dollar exchange rate. The cost of jet fuel makes up about 40 percent of the total cost of airlines, which means that this increase could have a direct impact on airlines.
