A surge in the prices of aviation turbine fuel (ATF) from April 1 is set to push airfares higher, as a sharp global crude spike and escalating tensions around the Strait of Hormuz tighten the screws on India’s aviation sector.
The pressure is already visible on ticket pricing, and airlines say the next round of revisions will accelerate the pass-through to passengers.
What is unfolding is not a routine fuel adjustment. Global jet fuel prices have more than doubled in four weeks, from $95.9 per barrel on February 20 to nearly $197 by March 20, driven by supply disruptions linked to the US-Israel and Iran war. Crude has risen over 50 per cent during the same period. For the airlines, where fuel accounts for 30-40 per cent of the cost, this is a direct hit on margins.
