Sunday, September 06, 2015

Jetfuel prices may have come down, but airfares go up

New Delhi: Despite riding high on a precipitous fall in jetfuel price, domestic airlines seem to be reluctant to pass on any significant benefits to air travellers and have instead raised airfares on busy routes to boost profitability.

Barring the busiest Delhi-Mumbai route, the other key sectors have seen average advance airfare for the month of September going up, albeit marginally, in spite of a steep 11.7 per cent fall in jetfuel price to Rs 40.93 a litre in Delhi this month.

Compared with its retail price of Rs 69.60 a litre in September last year, prices of jetfuel, also called aviation turbine fuel (ATF), have dropped 41 per cent. ATF accounts for nearly 40 per cent of an airline's total operating cost.

According to online travel portal, air-travellers could look forward to some softening in elevated fare level in October on these routes ahead of Dussehra provided they book in advance. Its airfare trend analysis showed average ticket price would again go up ahead of Diwali on higher demand (see chart).
06/09/15  Nirbhay Kumar/
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