Last Updated on Sep 29, 2021 by Manonmayi

The demand for aviation turbine fuel (ATF) has increased due to a spike in domestic air travel. The pandemic caused airlines to curtail flights amid a dramatic drop in passenger traffic. Therefore, the demand for ATF or jet fuel declined sharply in 2020 and 2021. In any case, ATF sales are projected to rebound in India, after the government has allowed airlines to operate at 85% of their pre-pandemic capacity.

According to the data from Indian Oil Corporation Limited (IOCL), there is a sharp rise in the price of jet fuel from Rs. 42,000 per kiloliter in 2020 to its price of Rs. 68,609.22 per kilolitre in 2021. And analysts have estimated that Indian airlines might run losses during the coming quarters. This could become a hindrance to the airlines as the costs will be passed on to the passengers. 

ATF accounts for about 30-40% of the overall airline cost. And during the June quarter, airlines were operating at a much lower capacity than March as it was hit by the second wave of coronavirus.  Nonetheless, as per ICICI Securities’ report, a seasonally strong Q3 of 2021 and increased flying capacity should contribute to limiting the losses.

Inline Feedbacks
View all comments
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.