Air-passengers may bear brunt of ATF prices, wary investors

High fuel costs are taking the joy out of flying that's a sentiment that every airline has begun to voice including Spicejet and IndiGo, the only two airlines to post a profit last quarter. CNBC-TV18's Kritika Saxena and Sunanda Jayaseelan report that with airlines pushed into a corner, passegners may have to bear the brunt.
SpiceJet is nearing the end of its tether. The company spent Rs 2,200 crore on aviation turbine fuel (ATF) in FY11 or 47% of total revenues. Despite a posting a growth of 51% in net profit in the first quarter, SpiceJet CEO Neil Mills says the recent spike in ATF prices does not give the airline much choice but to pass on the additional costs to the passenger.
Neil Mills, CEO, SpiceJet, said, "We can't absorb the increases in ATF prices anymore."
07/09/12 Sunanda Jayaseelan/CNBC-TV18/Moneycontrol.com

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Categories: Indian Aviation- In General Sep 2012