Punjab, Sept. 15 -- Jet fuel for domestic airlines went up Rs 6.28 a litre on 1 September, a 5.46% increase to Rs 121.28 a litre. It was the second monthly rise in a row, after Rs 5 a litre on 1 August. Airlines have started trimming frequencies, and the festive booking window opens next month.
Why this number moves fares
Aviation turbine fuel accounts for up to 40% of an Indian airline's operating cost - a share far higher than at most global carriers, largely because of how ATF is taxed here.
At that weight, a 5.46% fuel increase is roughly a 2% increase in total operating cost, arriving on top of an August rise that has not been absorbed yet. Two consecutive months is what turns a cost event into a pricing decision.
What airlines do ...