New Delhi, June 1: Adding to woes of struggling-to-survive airlines, jet fuel price has been hiked by almost 50 percent in June. The development came a week after airlines resumed domestic flight operations, which had been suspended due to the nationwide lockdown. Due to the sharp increase in the price of aviation turbine fuel (ATF), now a kilolitre (kl) of jet fuel will cost Rs 33,575, up by Rs 11,000 from last month. In Kolkata, ATF will cost Rs 38,543.48 per kl while in Mumbai, it will be priced at Rs 33,070.56 per kl.

ATF prices in Delhi were in the range of Rs 60-65,000 per kl for about a year till this February. The prices started falling in March when the nationwide lockdown was announced. The suspension of passenger flights during lockdown also resulted in a collapse in demand for aviation turbine fuel (ATF). The consumption of ATF in April declined sharply by close to 90 per cent to a mere 56,000 tonne last month from a level of 6,45,000 tonne in April, 2019. Unlock 1: Govt to Decide Dates for Opening of International Flights, Metro Rail, Cinema Halls, Gyms, Swimming Pools in Phase 3.

However, a week after the government allowed airlines to resume domestic flight operations, jet fuel price has been hiked 48 percent. This happened at a time when the demand for air travel is muted due to the coronavirus outbreak, quarantine rules and falling economy. According to Civil Aviation Minister Hardeep Singh Puri, 44,593 passengers flew on 501 domestic flights on May 31.

This means an aircraft with a seating capacity of up to 180 is flying with an average of less than 100 passengers. "Just when we were just beginning to take to the skies again, there has been a steep hike of 48%. With poor aircraft occupancy, higher fuel price and weaker rupee, airlines will need to closely examine how many planes should they be flying to keep costs in check as revenue stream is very weak,"  an official told Times of India.

(The above story first appeared on LatestLY on Jun 01, 2020 11:28 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).