New Delhi: The Civil Aviation Ministry is in constant touch with other union ministries to explore ways to ease the adverse impact of airfare hike in Aviation Turbine Fuel (ATF) prices. "The Ministry of Civil Aviation is making concerted efforts in consultation with the other ministries to ease the adverse impact of hike in ATF prices on the civil aviation sector," said Civil Aviation Minister Jyotiraditya M Scindia.
In a letter written to Congress MP from Kerala, Jebi Mather, Scindia said that the current increase in airfare is attributable to a number of factors like July, and August months are holiday seasons. He said that during this period of the Eid festival and school holidays in Gulf countries, there is more demand for air travel. "Due to unprecedented global geopolitical situation, the ATF prices have increased by about four times from Rs 32,424/KL in April 2020 to Rs 1,31,354/KL during June 2022. Currently, about 50 percent of operational cost is on account of fuel prices," said Scindia.
He informed that there has been capacity reduction mainly at Thiruvananthapuram and Calicut airports where operations have reduced by about 19 percent and 4 percent respectively as compared to the pre-Covid period.