Travel Cost: Air travel is anticipated to become slightly more affordable in light of the upcoming Holi and Eid celebrations. Government oil companies have announced a reduction in the price of aviation fuel, which will provide relief to airline operators. The price of Air Turbine Fuel (ATF) for domestic airlines has been decreased by Rs 222 per kiloliter. Consequently, domestic air travel may see a decline in costs following this adjustment in ATF pricing.
Lower ATF prices was made
The decision to lower ATF prices was made during a review of aviation fuel costs by government oil companies. Effective March 1, 2025, the prices for aviation fuel for domestic airlines have been reduced by approximately 1.50 percent. Following the reduction of Rs 222 per kiloliter, the price of ATF in Delhi has now been set at Rs 95,311.72 per kiloliter, down from Rs 95,533.72 the previous month. In Kolkata, domestic airlines will incur a cost of Rs 97,588 per kiloliter for ATF, while in Mumbai, the new price has decreased to Rs 89,070 from Rs 85,318.90. In Chennai, the revised price stands at Rs 98,567.90.
Surcharge may be lowered following the decrease in ATF prices
The impact of the reduction in aviation fuel prices is expected to be immediate. Domestic airlines typically impose a fuel surcharge when tickets are purchased, and this surcharge may be lowered following the decrease in ATF prices. It is important to note that ATF prices constitute approximately 40 percent of the overall operational costs for airlines, and fluctuations in these prices significantly influence their expenses.
While air travel may become more economical due to the reduced cost of aviation fuel, it is worth noting that flying to and from Delhi’s Indira Gandhi International Airport (IGIA) may become more expensive in the near future. The airport operator, DIAL, under the GMR Group, has proposed implementing varying user fees for economy and business class passengers, as well as for peak and non-peak travel times.