Govt Caps ATF Impact On Domestic Airlines, International Fares Likely To Rise

Big relief for airlines as the government steps in to contain the impact of the sharp ATF (jet fuel) price surge. Officials have clarified that the steep hike will largely impact non-scheduled carriers and international routes, while domestic airlines will face only a limited increase of around ₹15 per litre. The move comes after initial data suggested a massive spike in ATF prices, raising fears of a surge in airfares. While domestic ticket prices may see only a marginal rise, international travel is expected to become more expensive as airlines absorb the full cost increase. With crude oil volatility still high due to the ongoing West Asia conflict, oil companies have not ruled out further phased hikes in ATF prices going forward. Airlines, already under financial stress, may continue to face pressure on margins in the coming weeks.