The government has upped prices of aviation turbine fuel (ATF) prices by 4.9-5.7 percent in June. This follows a steep increase of 9.2 percent at the beginning of June. The revised prices of ATF in Delhi now stand at Rs 49,287/kl from Rs 46,729/kl. With this, the overall price increase totals about 23 percent since January 1, 2016 and are now the highest since July 2015.
Low fuel cost and expenses aided business of aviation companies during most of last year. However, as turbine fuel constitutes 35 percent of operating costs for airlines the steep increase this calendar year are expected to weigh down their earnings. Shares of Jet Airways and InterGlobe Aviation are likely to stay under pressure in trade today.
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