Policy▲ Bullish for Indian equities
Government in talks with airlines and oil companies over high jet fuel prices
The brief
- Aviation minister Rammohan Naidu said discussions are under way with airlines and OMCs
- ATF accounts for around 40% of airlines’ operational costs
- Any relief on ATF costs could support Indian airlines, including SpiceJet
- Naidu says India could have its first indigenous civilian aircraft within two years
- Four new airports to come up in West Bengal in two years: K Rammohan Naidu
IndiGo faces rising jet fuel costs
Higher aviation turbine fuel (ATF) prices are pressuring IndiGo’s margins, prompting the airline to raise fuel charges; domestic fees now range from ₹375 to ₹1,300 and international fees from ₹1,000 to ₹10,000. The government is discussing high jet fuel prices with airlines and oil companies, while analysts see fare strength supporting earnings.
Tuesday, 6 October
- Government in talks with airlines and oil companies over high jet fuel prices