Will Airfare Rise Amid Diwali and Chhath Festivities as Aviation Fuel Prices Surge

As Diwali and Chhath Puja celebrations unfold across the country, many people are traveling home to spend time with family and friends. This surge in festive travel, however, is contributing to a significant spike in airfare. On top of this seasonal increase, recent developments indicate that air travel may become even more costly. As of November 1, government oil marketing companies have announced an increase in the price of aviation turbine fuel (ATF), further impacting the cost of air travel.

ATF Price Hike to Directly Impact Travelers

Starting November 1, the price of ATF has risen by 3.35%, amounting to an increase of about Rs 2,941 per kiloliter. This hike is expected to directly affect the pockets of air travelers, especially those planning trips for Chhath Puja, upcoming weddings, and other seasonal events.

In October, government oil companies had temporarily reduced ATF prices, offering slight relief to travelers. However, with November's arrival, the prices have climbed once more. This increase is attributed to the rising global prices of crude oil, which directly influence the cost of aviation fuel. As a result, in Delhi, ATF now stands at Rs 90,538.72 per kiloliter, up from the previous month’s rate of Rs 87,587.22 per kiloliter. This rise reflects a 3.35% increase.

Regional ATF Prices Across Major Cities

The ATF price hike varies slightly across major cities:

Delhi: ₹90,538.72 per kiloliter

Kolkata: ₹93,392 per kiloliter

Mumbai: ₹84,642 per kiloliter

Chennai: ₹93,957 per kiloliter

These new rates demonstrate a consistent upward trend, affecting airlines and travelers alike. The higher fuel cost contributes to operational expenses for airlines, who often pass this burden onto consumers through increased ticket prices.

Rising Costs for Airlines and Passengers

The costlier ATF is expected to place an additional financial strain on travelers, particularly those reliant on air travel. Airlines, which already contend with tight margins, are likely to transfer these added expenses to customers in the form of higher ticket prices. Indigo, the country’s largest airline, recently cited the rising ATF costs as a factor impacting its profitability.

As travel demand continues to peak with the festival and wedding season in full swing, the impact of these rising prices could be even more pronounced. Both airlines and passengers will need to brace for higher costs, as fuel expenses remain a substantial component of airline operational budgets.

In this festive season, while family reunions and celebrations are paramount, the sharp increase in ATF prices and the expected airfare surge pose an additional expense for travelers.