Jet fuel prices are likely to be reduced by Rs 2,000 per kilolitre from December 1 in line with fall in international oil prices.
Major domestic airlines on Wednesday said they were considering imposing a fuel surcharge and hiking air fares following the announcement of a Rs 1,600/kl rise in jet fuel prices from midnight on Wednesday.
Air France on Thursday became the first international carrier to hike its fares from India by three euros, citing steep rise in aviation turbine fuel prices as the reason, which may also force Indian carriers to follow suit.
State oil companies have raised aviation turbine fuel (or jet fuel) prices by 2.86 per cent in line with rising international oil prices.
Following on the footsteps of Indian Airlines, two leading private carriers Jet Airways and Air Sahara on Monday announced increase in fares in all sectors by 12 per cent from April 15.
India needs a host of low-cost carriers, like in other countries, to enable more people to fly, global consulting firm A T Kearney said on Friday.
The domestic aviation industry is expected to report a net loss of Rs 25,000-26,000 crore this fiscal with elevated jet fuel prices and fare caps continuing to pose a major challenge for the airlines' profitability, domestic rating agency ICRA Ltd said on Thursday. The domestic airlines, however, are likely to post a reduced net loss of Rs 14,000-16,000 crore in the next financial year on the back of a "notable recovery" in air passenger traffic and lower level of debt, ICRA said. The ratings agency also estimates that the industry will require an additional funding in the range of Rs 20,000-22,000 crore during FY22-FY24.
The demand for black oils and specialty products like fuel oil, bitumen, petcoke and sulphur has also shown marked improvement, facilitating increase of refineries throughput.
Households continued to bear the brunt of increased cost of living with inflation rising by 0.35 per cent to 7.96 per cent for week ended August 7, mainly due to costlier vegetables, petrol, diesel and aviation turbine fuel.
The US-led war against Iraq and the Severe Acute Respiratory Syndrome have led to sharp decline in demand for air travel and raised costs on account of aviation turbine fuel, the Lok Sabha was informed on Monday.
Public sector oil firms on Tuesday slashed aviation turbine fuel prices by 7.9 per cent in line with fall in international oil prices.
Indian Airlines on Wednesday announced a 10 per cent hike in air travel on all domestic sectors with effect from June 21 citing the continuous increase in prices of aviation turbine fuel.
Indian Airlines and Air-India are expected to hike airfares by ten per cent following a green signal from Civil Aviation Minister Praful Patel.
Iraq war to hurt Indian airline industry.With war clouds looming large over Iraq, the Indian airline industry is bracing itself against an increase in insurance premium and an additional burden of an estimated 25 per cent hike in ATF.
State-run oil firms on Thursday cut aviation turbine fuel (ATF) or jet fuel prices by 4.3 per cent in view of halving of the customs duty on the fuel to five per cent. From today, ATF in Delhi will cost Rs 66,226.66 per kilo litre, down Rs 3,000.42 per kl, while in Mumbai the price has been cut by 4.36 per cent to Rs 68,626.87 per kl, an Indian Oil official said.
Domestic airlines expect the fall in prices of aviation fuel to boost their earnings from the quarter ending December.
Sri Lanka may extend its contract with Indian Oil Corporation for import of diesel and jet fuel during February-April.
The increase in prices of jet fuel by about nine per cent would put an additional burden of Rs 550 crore (Rs 5.5 billion) on national carrier Indian and the airline has asked the government to consider levying a fuel surcharge on air travel or hiking
The Indian economy requires a Rs 3 lakh crore fiscal stimulus, including cash transfer to households through Jan Dhan accounts to spur economic growth amid the pandemic, industry chamber CII said on Thursday and pitched for appointment of a 'Vaccine Czar' for speedy vaccination coverage. CII president T V Narendran also said the chamber expects GDP to grow at 9.5 per cent in 2021-22 as the strong growth in the second half of the fiscal year will be supported by robust external demand and large-scale coverage of vaccination, allowing resumption of economic activity. He also advocated for appointment of a "Vaccine Czar" for speedy vaccination coverage.
Airlines are of the view that the cut in prices is too little for them to pass on to consumers, especially after a series of price increases over the last six months.
Reliance Industries will export about 8-9 million tonnes of petroleum products or 33 per cent of Jamnagar refinery production this fiscal.
There is no proposal from Indian Airlines to sell its assets for meeting daily expenses and neither has it sold any for the purpose, Civil Aviation Minister Shahnawaz Hussain said on Monday.
Mirroring the state of Indian economy, petroleum product consumption rose 1.8 per cent to 82.48 million tonnes in the first 11 months of the current fiscal as opposed to 81.05 million tonnes sales in the same period last year.
Indian Airlines fares have been raised by 15 per cent across the board with immediate effect due to a massive increase in the prices of aviation turbine fuel, Civil Aviation Minister Shahnawaz Hussain
Indian Airlines is likely to suffer a loss of Rs 98.90 crore (Rs 989 million) in 2002-2003 due to increase in the price of aviation turbine fuel and hike in insurance premium, landing and navigational charges and levy of customs duty.
The civil aviation ministry is holding talks with the finance ministry on rationaliation of sales tax on aviation turbine fuel and airport taxes.
IA may be hurt badly in case of a US attack on Iraq, which would lead to a massive increase in insurance premium and an additional burden of an estimated 25% hike in ATF prices.
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