New Delhi [India], April 30 : India's domestic airlines are bracing for tomorrow's (Friday) ATF (Aviation Turbine Fuel) price announcement as they continue to navigate volatility in global energy markets. The government had earlier stepped in to shield the domestic aviation sector from a potential price explosion, but industry players remain anxious about the next revision.
According to industry sources, international benchmarks had pointed to a surge in jet fuel prices this month. However, on April 1, the government, in consultation with the Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation, directed Public Sector Undertaking (PSU) Oil Marketing Companies to limit the increase for domestic airlines to just 25 per cent, equivalent to a modest Rs 15 per litre hike. This partial and staggered adjustment was designed to protect domestic air travel costs from the full brunt of international price shocks.
The decision came against the backdrop of extraordinary global developments, including the closure of the Strait of Hormuz, which had triggered expectations of more than a 100 per cent spike in ATF prices for the domestic market on April 1.
While domestic carriers received this relief, airlines operating on international routes are paying the full increase in line with global benchmarks.
In response to the April hike, Indigo, the country's largest airline, revised its fuel surcharge for both domestic and international routes.
Just two days ago, the Federation of Indian Airlines (FIA) wrote to the government seeking urgent support on ATF pricing to ensure the sustainability of airline operations. Industry insiders say carriers are hoping for further relief or at least stability in tomorrow's announcement to help manage rising operational costs and keep airfares affordable for passengers.
The aviation sector has been under pressure due to fluctuating fuel costs, which constitute a significant portion of airline expenses. Any further moderation in ATF prices could provide much-needed breathing space to domestic carriers, while a fresh upward revision might force additional fare adjustments.
The Ministry of Civil Aviation and oil companies are expected to issue the updated ATF prices for May tomorrow. Airlines and passengers alike will be closely watching the announcement.
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