(INFRALINE) — Bad news for India’s domestic airlines. The price of aviation turbine fuel has gone up 5.07% in November, the second sharpest rise in the current financial year. According to industry estimates, a 1% rise in the ATF price results in an addition of Rs 100 million to the airlines’ fuel bill. (US$1=Rs45).
Fuel accounts for 30% of the operating expenses of domestic airlines. This month, the ATF price rose to Rs 21,750 a kilolitre from Rs 20,700 a kilolitre in October, continuing a run of increases for three consecutive months.