Air travel could become slightly more expensive from April 1, as airlines brace for a likely increase in fuel costs. Early signals suggest that Aviation Turbine Fuel (ATF) prices may go up, which often has a direct impact on ticket prices.
Fuel is one of the biggest expenses for airlines. When ATF prices rise, airlines usually try to pass on some of that cost to passengers. With a revision due on April 1, the pressure on airfares is building again.
This time, the concern is sharper because global fuel prices have surged significantly in recent weeks. The ongoing conflict in West Asia has pushed crude oil prices higher. As a result, jet fuel prices have also shot up.
In fact, global ATF prices have nearly doubled in a month. From about $99 per barrel in late February, prices have risen to around $195 per barrel by the end of March. This steep jump is making operations more expensive for airlines.
The Centre is trying to prevent a sharp rise in ticket prices. It is working on ways to balance the needs of airlines and passengers without hurting either side too much.
Civil Aviation Minister Ram Mohan Naidu has also reached out to state governments. He has asked them to c, which could help bring down overall fuel costs, sources told India Today.
In India, VAT on aviation fuel varies from state to state and can be quite high. Airlines have long argued that lowering this tax can give them breathing space, especially when global prices are rising.
If states agree to cut VAT, it could soften the blow for airlines and possibly keep airfares from rising too sharply.
There is a strong chance that airfares may increase in the coming weeks, especially if fuel prices continue to rise. However, any increase may be gradual rather than sudden, depending on how much support comes from the government and states.
For now, travellers should be prepared for slightly higher fares, particularly on busy routes and during peak travel periods.