NEW DELHI: Air travellers in India may soon face significantly higher fares as aviation turbine fuel (ATF) prices have surged to unprecedented levels in April, driven by the ongoing Iran conflict. Oil public sector companies announced steep revisions on Wednesday, with domestic ATF prices rising by about 115% and international rates increasing by over 107%.
In Delhi, a kilolitre (KL) of ATF for domestic flights now costs Rs 2,07,341.22, up from Rs 96,638.14 last month—marking the first time prices have crossed the Rs 2-lakh threshold in key cities like Delhi, Kolkata, and Chennai. In Mumbai, prices jumped similarly to Rs 1,94,968.67 per KL.
For international operations, ATF in Delhi has climbed to $1,690.81 per KL, compared to $816.91 in March. Kolkata now records the highest rate at $1,727.3. The weakening rupee—now at record lows beyond 95 per dollar—has further intensified cost pressures for airlines, whose expenses are largely dollar-denominated.
Fuel already accounted for 40–45% of airline operating costs, and this sharp spike is expected to significantly strain finances, especially for smaller carriers. Airlines are likely to respond by increasing fares, revising fuel surcharges, and reassessing route viability. While some demand pockets remain strong, particularly on international routes, sustained high costs and economic uncertainty could dampen travel demand and lead to reduced flight frequencies in the coming months.
