Air travel to get costlier? Airlines hit hard as ATF prices soar from December 1

ATF price hike: The holiday season brings a shock of rising costs for airlines and passengers as state-run oil marketing companies (OMCs) announced a hike in Aviation Turbine Fuel (ATF) prices. Starting December 1, 2024, ATF prices have been increased by Rs 1,318.12 per kiloliter, which is expected to push airfares higher, making air travel more expensive during the festive season. 

Revised ATF prices 
According to government data, the Aviation Turbine Fuel (ATF) prices in the country’s four major metro cities are as follows:
Delhi: Rs 91,856.84 per kiloliter
Kolkata: Rs 94,551.63 per kiloliter
Mumbai: Rs 85,861.02 per kiloliter
Chennai: Rs 95,231.49 per kiloliter

Prices were hiked last month too
This is the second consecutive month of a hike in Aviation Turbine Fuel (ATF) prices. Last month, on November 1, ATF rates were increased by Rs 2,941.5 per kiloliter. As a result, airlines’ operational costs are rising rapidly.

Airfare could see an increase
Experts believe that airfares could rise by 10-15 per cent. As a result, passengers may face higher ticket prices during the upcoming holiday season in December. Airlines may increase fares in response to this hike, leading to higher costs for travellers.

What’s driving the price hike?
The increase in ATF prices is due to fluctuations in international crude oil prices and a decline in the rupee-dollar exchange rate. Aviation fuel costs account for nearly 40 per cent of airlines’ total expenses, meaning this rise could directly impact airfares.