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ATF Prices for Foreign Airlines Rise 5% for Second Month; Domestic Carriers Unchanged

Aviation turbine fuel prices for foreign airlines rose by about 5% in May, marking the second consecutive monthly increase. Domestic carriers, however, saw no change in ATF prices, continuing to benefit from moderated pricing. The hike is attributed to elevated global energy prices and geopolitical tensions, particularly the Iran conflict. State-run oil companies are staggering the impact to cushion cost pressures for domestic airlines.

Key Points: Foreign Airlines ATF Prices Rise 5% Second Month

  • Foreign airlines ATF prices rise 5% for second month
  • Domestic carriers see no change in fuel costs
  • Global energy price volatility and geopolitical tensions blamed
  • Fuel is a major cost component for airlines
2 min read

ATF prices for foreign airlines rise 5 pc for 2nd month, stays unchanged for domestic carriers

ATF prices for foreign airlines rise 5% for second month, while domestic carriers see no change. Global tensions and oil price volatility drive the hike.

"Instead of passing on the entire increase immediately, oil firms and the government are staggering the impact. - Industry sources"

New Delhi, May 1

Aviation turbine fuel prices for foreign carriers were raised by around 5 per cent on Friday -- marking the second consecutive monthly increase, even as domestic airlines were shielded from any revision.

State-run oil marketing companies, including Indian Oil Corporation, revised the rates in line with elevated global energy prices.

The hike applies only to international operations and foreign carriers, while ATF prices for domestic airlines remain unchanged.

In Delhi, which serves as the benchmark for ATF pricing in India, fuel for international airlines increased by $76.55 per kilolitre, or 5.33 per cent, taking the price to $1,511.86 per kl.

This follows a previous revision on April 1, when ATF prices for domestic carriers were sharply raised by 25 per cent to Rs 1,04,927.18 per kl.

ATF prices in India have been deregulated for over two decades and are linked to international benchmarks under an agreed pricing mechanism between airlines and oil companies. However, industry sources indicated that authorities are currently adopting a calibrated approach to pricing amid volatility in global energy markets.

According to sources, rising geopolitical tensions, particularly linked to the Iran conflict, have pushed up global fuel prices. Instead of passing on the entire increase immediately, oil firms and the government are staggering the impact. As a result, international carriers are being charged market-linked rates, while domestic airlines continue to benefit from moderated pricing to cushion cost pressures.

Fuel remains one of the largest cost components for airlines, and any increase in ATF prices has a direct bearing on operating expenses. The latest revision is expected to raise costs for international operators flying to and from India.

Oil marketing companies revise ATF prices at the start of every month based on global trends. With the latest hike, international carriers have now seen fuel costs rise for the second straight month, while domestic airlines continue to operate under relatively stable pricing conditions.

- IANS

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Reader Comments

P
Priya S
Makes sense actually. Global energy prices are volatile right now with the Iran situation, and domestic airlines are already struggling with high operational costs. If they pass on the full hike, tickets for common people will become unaffordable. This staggered approach is pragmatic. 👌
V
Vikram M
Interesting how the government protects domestic airlines but forgets that foreign carriers also bring tourists and business to India. If costs rise for them, they might reduce flights or increase fares, ultimately hurting Indian passengers who fly abroad. Short-term thinking again.
S
Siddharth J
As someone who travels internationally for work, this directly impacts my travel costs. But honestly, with the way global oil prices are rising, this was expected. The real question is why domestic carriers got a 25% hike last month but now no change? Inconsistent policy making. 😕
M
Michael C
Living in India and working for a foreign airline, this is frustrating. We follow all the same rules and pay taxes, yet we get differential treatment. The government claims deregulation but then picks winners and losers. Either set one price for all or none. This feels discriminatory.
R
Rohit L
Good move by the government to protect domestic aviation sector. Indian airlines are still recovering from pandemic losses. Foreign carriers have deeper pockets and can absorb these hikes. Domestic flyers should not be burdened with higher fares when our own airlines are struggling. 🇮🇳

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