Just when aviation companies were hoping for business as usual with the resumption of international flights, a record hike in jet fuel prices have left them blindsided. Aviation Turbine Fuel (ATF) prices spiked by a record 18 percent in Delhi on Wednesday, crossing the one lakh per kilolitre mark for the first time.

Aviation turbine fuel prices have risen by 50 percent since the start of 2022 and by more than 82 percent in the last one year.

IndiGo, India’s largest airline by market share, has said that they would be adversely impacted as ATF constitutes over 45 percent of their operational costs -- other airlines would be feeling the heat as well and bracing for a severe impact on their bottomline.

To discuss this, CNBC-TV18’s Parikshit Luthra spoke to Devesh Agarwal, Chief Analyst at Bangalore Aviation, and Mayur Milak, Senior Research Analyst at Asian Markets Securities.

Watch accompanying video for more.

Also Read: Air travel to get expensive as jet fuel price jumps record 18%

First Published:Mar 17, 2022 6:19 PM IST