Is Air Travel Getting Expensive? Jet Fuel Prices Surge Again in Major Indian Cities - Read Now
Jet fuel prices surge in November, impacting costs in Delhi, Kolkata, Mumbai, and Chennai. With 40% of operational costs tied to jet fuel, airfare hikes may follow. Here's how it could affect flight tickets and airline stocks.
Fresh hike: Jet fuel prices will hit major Indian cities this November, probably causing a spurt in airfares. Jet fuel is about 40% of the operational cost for any airline and directly determines ticket prices. This new increase has come after a two consecutive month decline with the decline having been around ₹10,000 per kiloliter. Still, since the beginning of the new month, the change seen has been drastic as again, jet fuel has shot up in Delhi, Kolkata, Mumbai, and Chennai.
Jet Fuel Price Hike in Major Indian Cities
In the national capital, Delhi, jet fuel prices have increased by ₹2,941.5 to touch the mark of ₹90,538.72 per kiloliter from ₹87,597.22. In Kolkata, the prices were on the same page as they have increased by ₹2,781.99 to ₹93,392.79 per kiloliter from ₹90,610.80. In the financial capital of India, Mumbai, prices have gone up by ₹2,776.78 and are now at ₹84,642.91 per kiloliter. Air fares and airline shares suffered, while the maximum increase in price was ₹2,992.67 by the leading southern city of Chennai.
Jet fuel prices hiked from ₹90,964.43 to ₹93,957.10 per kiloliter at the southern city of Chennai.
This rise in jet fuel is likely to propel the air lines to rise their fares to sustain profit margins on the basis of the increased cost of expenses. This had happened once: when the prices of jet fuel dipped 6% last month, airline stocks, including the companies Indigo and SpiceJet, rose. So today with the revived prices, air travel could go up. The changes in the airline stock follow the changes in the cost of its operation and the demand made upon it.
For the traveler, this could translate to pricier tickets in the coming months as airlines react to the latest changes in jet fuel prices. As jet fuel accounts for a large part of an airline's budget, any alteration in its price directly affects airfare.
