Indore: Spurt in ATF prices hitting fliers badly, Now, pay Rs 2,000 more to fly to Mumbai, Delhi

Indore: Spurt in ATF prices hitting fliers badly, Now, pay Rs 2,000 more to fly to Mumbai, Delhi

Air fare for major destinations from the city raised by 15% to 20% in just 3 months. In same period, ATF price rose from Rs 32.79 per kg-litre to Rs 112.70 per kg-litre.

Manish UpadhyayUpdated: Wednesday, April 06, 2022, 02:01 AM IST
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Indore (Madhya Pradesh): The price hike in air fares—from 15% to 20% from the city to major destinations in the past three months—is hitting the middle- and high-income classes hard. Air fares to two prominent destinations from the city—Mumbai and New Delhi—have risen by almost Rs 2,000 in the past three months. This is being reflected in ticket bookings, which are in some sectors registering below expectations.

A rise in crude oil prices across the globe always fuels a price hike in the country. As any other essential commodity or service, air fares, too, have been adversely impacted by the recent fuel price hikes. Free Press analysed this whole affair taking into account the rise in prices of air turbine fuel (ATF), used for flying aircraft, and its impact on air fares and, ultimately, on passengers in the past 3 months.

Aviation experts say the Russia-Ukraine war created a crisis of petroleum products, which led to a sudden spurt in crude prices. As a result, ATF, which was Rs 53 per kg-litre on February 1, rose to Rs 112.70 per kg-litre on April 4 (Tuesday). In other words, ATF prices have more than doubled during this period, leaving the airlines no other option than to pass on this financial burden to the passengers by way of air fares.

“The airlines have fallen prey to the double whammy. Initially, they recorded a huge loss due to the corona-created lockdowns and, now, there is a fear that, if they raise the fare even a little more, they may lose passengers,” an aviation expert said.

‘Air fares linked to ATF prices’

‘Air fare hike is always linked with the prices of ATF. On February 1, the prices of ATF was Rs 53.79 per kg-litre, which has risen to Rs 112.70 per kg-litre. Thus, airlines have raised air fares from 15% to 20%’ — Ratan Ambhore, aviation expert (working in this field for the past 26 years)

‘Win-win situation’

‘The hike in air fares is impacting ticket bookings negatively. Lowering of fares can be a win-win situation for passengers and airlines as opposed to the option of having more vacant seats on flights’ — TK Jose, chairman, Travel Agents’ Federation of India (TAFI), MP Chapter

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