ATF prices for international airlines slashed 27% as global jet fuel costs ease

Aviation Turbine Fuel (ATF) prices for international airlines witnessed a steep cut from Monday, June 1, providing relief to overseas carriers after global jet fuel benchmarks eased.

The rates for domestic airlines, however, were left unchanged for the second consecutive month.

ATF prices for international carriers were reduced by about 27%, bringing the rate down by more than USD 400 per kilolitre to around USD 1,100 per kl.

ATF rates for international airlines had increased by USD 76.55, or 5.33%, to USD 1,511.86 per kl on May 1, after more than doubling in April to USD 1,435.31 per kl amid a surge in global energy prices.

On the other hand, domestic airlines will continue to pay ₹1,04,927.18 per kilolitre for jet fuel, a rate that has remained unchanged since April 1.

While fuel supplied for international operations is closely aligned with global jet fuel prices and currency movements, domestic ATF prices can be insulated from volatility through government intervention and cost absorption by oil marketing companies (OMCs).

With international fuel prices now easing, oil marketing companies have extended the benefit to overseas carriers while continuing to hold domestic ATF rates steady.