Airfare Caps Imposed on Airlines To be Removed from This Date | Deets Inside

The Aviation Turbine Fuel (ATF) or jet fuel prices have been on an upward trajectory in recent months, especially in the wake of the ongoing Russia-Ukraine conflict.

Written by: India.com News Desk Edited by: Victor Dasgupta

Updated: August 10, 2022, 8:29 PM IST

Share

Share Article

• Facebook
• WhatsApp
• X
• Email
• Telegram
• Linkedin

https://www.india.com/business/airfare-caps-imposed-on-airlines-to-be-removed-from-this-date-atf-price-aviation-ministry-5565215/ Copy

International Flights Latest News: After easing restrictions, the UAE has announced new guidelines for international air passengers.

New Delhi: The Centre on Wednesday decided to end the airfare caps imposed on domestic airlines in 2020 during the coronavirus pandemic. The civil aviation ministry said that the airfare caps would be removed from August 31. It further added that the decision has been taken after careful analysis of daily demand and the ATF price.

The airlines will again be free to charge as per market forces of demand and supply.

“The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in & we are certain that the sector is poised for growth in domestic traffic in the near future,” tweeted Aviation Minister Jyotiraditya Scindia.

The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in & we are certain that the sector is poised for growth in domestic traffic in the near future. https://t.co/qxinNNxYyu

— Jyotiraditya M. Scindia (@JM_Scindia) August 10, 2022

Earlier, Civil Aviation Minister Jyotiraditya Scindia had informed that the government will certainly re-evaluate the fare cap in place for domestic airlines once there is a healthier environment in terms of jet fuel prices.

After the coronavirus pandemic rattled the country’s civil aviation space, the sector is now in recovery mode, especially in terms of the number of air travellers and Akasa Air has also started services, becoming the first domestic carrier to launch operations in the last eight years.

In an interview to PTI, Scindia said that as it stands today, the fares of airlines are not close enough to the low portion of the fare cap and are very far away from the high portion of the fare cap.

“I have seen stabilisation happen and at an appropriate time, we will certainly look at that. I am looking at ATF prices also coming off and as that becomes a more healthier environment, we will certainly re-evaluate that,” the minister said.

The Aviation Turbine Fuel (ATF) or jet fuel prices have been on an upward trajectory in recent months, especially in the wake of the ongoing Russia-Ukraine conflict. Recently, the prices in the country were cut but remain much higher than the level seen during the pre-pandemic time.