Mumbai: The rising military tension in Ukraine is going to pinch the pockets of air travellers in India, as the crisis has sent jet fuel prices to a new high in 2014.
Jet fuel prices have been witnessing an upward trend since April, after seeing a dip in the months preceding it. International Air Transport Association (IATA), a trade body representing 280 airlines across the globe, blames the price rise to the ongoing crisis in Ukraine, which threatens to disrupt the crude oil supplies.
A latest IATA report states: "Jet fuel prices rose back above USD 120/barrel (bbl) in April, remaining well within the high range of the past 3 years. The recent rise in crude oil prices largely reflects rising tensions in Ukraine, which threaten to disrupt supplies." According to aviation industry experts, jet fuel purchase is the biggest expenditure an airline makes for its operations. In India, jet fuel consumes over 42 per cent of the expenditure of all airlines and this gets passed over to the passengers at a later stage.
The crisis in Ukraine and subsequent military intervention caused instant uproar and opposition from the US, Europe and other countries, who later even enacted some sanctions on Russian (although lighter ones).
12/05/14 Daily News & Analysis
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Jet fuel prices have been witnessing an upward trend since April, after seeing a dip in the months preceding it. International Air Transport Association (IATA), a trade body representing 280 airlines across the globe, blames the price rise to the ongoing crisis in Ukraine, which threatens to disrupt the crude oil supplies.
A latest IATA report states: "Jet fuel prices rose back above USD 120/barrel (bbl) in April, remaining well within the high range of the past 3 years. The recent rise in crude oil prices largely reflects rising tensions in Ukraine, which threaten to disrupt supplies." According to aviation industry experts, jet fuel purchase is the biggest expenditure an airline makes for its operations. In India, jet fuel consumes over 42 per cent of the expenditure of all airlines and this gets passed over to the passengers at a later stage.
The crisis in Ukraine and subsequent military intervention caused instant uproar and opposition from the US, Europe and other countries, who later even enacted some sanctions on Russian (although lighter ones).
12/05/14 Daily News & Analysis
