Aviation

ATF price cut impact will be visible in Q3

MUMBAI

Domestic airlines are expecting positive impact in the bottom line due to fall in aviation fuel prices from Q3.

While global crude oil price fell 21% since June, domestic aviation turbine fuel price dropped 0.8% between July and September. Jet fuel price was further cut 3% from October bringing much relief to the loss making airlines, reports Business Standard.

“We should see a better impact in ATF price in Q3. Revision in ATF price as a result of lower crude price gets implemented with a time lag,” said a senior executive of a private airline.

In Delhi domestic ATF is priced at Rs 67,525 from October 1 down from Rs 70,161 in July.

ATF prices have eased and overall there has been nearly 6% drop in price between April and October. In April domestic ATF was priced at Rs 71,800.

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