Airfares Set For Rise As ATF Prices Skyrocket
Recently there is a piece of news circulating in the market as the news is related to the aviation industry and also somehow related to the recent globally increased fear of inflation in the corporate markets as this is the result of the Russian Ukraine war as Russia is a huge raw gas and oil supplier in the world as he increased the fuel prices after the nato countries put sanctions on Russia, and here is a report on this whole issue continue reading below, Follow More Update On GetIndiaNews.com
A huge hike in the air-fuel is as going and Airfares are set for rising according to the ATF prices skyrocket. this hike is going hitting the peaks of a marginal 1.3% cut in rate earlier this month, ATF is costing very high and it is estimated that it makes up to 40% of airlines’ operational revenue costs which really affects the financial state of airlines, and this is brent is trading at $119.16/ bbl which is depreciated against USD making imports costlier,
The news is coming from New Delhi in the reports of headquarters and ministry released recently that hike in aviation turbine fuel of ATF prices. these prices are also a result of the depreciation of the rupee value international against the USD, this situation had left domestic airlines with no choice but to immediately rise the air travel fairs for the flights. this is said by the officials of airlines Mr. Ajay Singh, the chairman and managing director of spice jet airlines, on Thursday, when the services were restarted on May 15, 2020. this hike leads to the minimum 10/ 15 percent increments in fairs will ensure the cost of operation,
Indian airlines Ministry New Delhi, imposed a limit on domestic airfares based on flight duration and distance, as per rules from the ministry airlines cant charge a ticket amount less than 2900, excluding GST, as the lower limit of capital was imposed for benefit of airlines so that airlines will recover the financial losses, which airlines suffered during to travel restrictions and also can’t charge more than 8800 excluding GST, this upper limit is for passengers benefit so that passengers may not be charged huge amounts when the demand for seats is high, on a flight less than 40 minutes.
fuel prices hiked from the after-effects of the Ukraine and Russia war, which broke on February 24. an airline’s official report showed an increase of 120 % in the prices of air-fuel since June 2021 and this increase is not final fixed and govt of center and state should take some urgent steps so that taxes on ATF may be reduced as taxes in India are among the highest in the world on ATF. Spicejet official said Airlie trying to bear the increased price as it is burdened for several months which is almost 50% of the operation cost and the weakening of the Indian rupee against the US dollar is also leading to airlines fair as the global market is dominated potentially by the US dollar.