Govt likely to hold ATF prices steady in June amid airline concerns

The government is likely to maintain stability in aviation turbine fuel (ATF) prices for June, following industry requests to avoid further cost pressures on domestic airlines, sources said.

In April, the Centre had capped the increase in ATF prices at up to 25%, offering temporary relief to carriers grappling with volatile global crude trends. Notably, ATF prices were left unchanged in May, providing airlines a brief window of cost predictability during a peak travel period.

Airlines have since urged the Ministry of Civil Aviation and oil marketing companies to continue the status quo into June, warning that any sharp hike could strain margins and potentially impact ticket pricing. The sector is still recovering from high operating costs, currency fluctuations and intense fare competition on key domestic routes.

Sources indicate the ministry is inclined to avoid a price revision for now, balancing industry stability with broader fuel pricing dynamics. ATF remains one of the largest cost components for airlines, accounting for a significant share of operating expenses.

A continued pause in price hikes could help sustain passenger demand and support airline balance sheets in the near term.

 

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