Domestic Flights Latest News: From July 1 onwards, aviation turbine fuel is becoming dearer with the prices going up in metros. The last revision was on June 16. In Delhi, the prices were revised on June 1 as well. The price revision — basically price rise — in quick succession will eventually result in costlier air tickets, experts feel. Also Read - International Flights: Air India to Operate 14 More Flights Between India, UK From July 15; Bookings to Open on July 13 | Check Details
Here are the new prices: Delhi: Rs 41,992.81 per kilolitre, Kolkata: Rs 46,604.85 per kilolitre, Mumbai Rs 41,575.94 per kilolitre, Chennai Rs 43,332.53/kilo litre. Also Read - International Flights: Emirates, Etihad, Air Arabia Begin Flying to India | Canada, Germany Airlines Likely to be Next
The last prices of ATF in Kolkata, Mumbai and Chennai stood at Rs 44,024.10, Rs 38,565.06, and Rs 40,239.63, respectively. Also Read - Air India Announces Additional Flights to Germany, Toronto, Singapore. Booking Opens on July 13
Will this impact ticket prices?
1. Fuel price hike directly impacts ticket price as the cost of operations is likely to be impacted.
2. The airlines can’t buy ATF from other countries at a cheaper rate as international flights are not in operation.
3. The civil aviation ministry wants airlines to increase their capacity.
4. However, there are upper and lower limits on airfares, which were imposed after domestic flights resumed operations on May 25. It was apprehended that the private airlines will charge a hefty amount of ticket fare to compensate the losses they suffered during the two-month lockdown. Hence, the limits were imposed.
5. The upper and lower limits may get extended beyond August 24, the aviation ministry recently said.
So, as long as the upper cap is there, there will be no hike. But the upper cap will not be there for long as the aviation industry is reeling under losses. Once the government withdraws the upper cap, ticket prices are likely to go up.