India: Airlines get a flying start in 2019 as jet fuel price is slashed by 14%
The new year began on a positive note for domestic airlines as state oil marketing companies slashed aviation turbine fuel price by 14.7%. This is the second consecutive drop in jet fuel price and the sharpest cut since Nov 2008. The revision brings relief to domestic airlines which have been struggling to make profit because of a rise in operating costs. High fuel and depreciating rupee resulted in big losses for the 3 major airlines in the Q2 of FY19. Crude oil prices, however, are on a decline over the last few weeks over concerns of a supply glut. Boeing expects crude price to remain around US$60 per barrel in 2019. Inability to pass on high costs has been another bane for domestic carriers. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-01-02/general/india-airlines-get-a-flying-start-in-2019-as-jet-fuel-price-is-slashed-by-14
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India: Airlines get a flying start in 2019 as jet fuel price is slashed by 14%
The new year began on a positive note for domestic airlines as state oil marketing companies slashed aviation turbine fuel price by 14.7%. This is the second consecutive drop in jet fuel price and the sharpest cut since Nov 2008. The revision brings relief to domestic airlines which have been struggling to make profit because of a rise in operating costs. High fuel and depreciating rupee resulted in big losses for the 3 major airlines in the Q2 of FY19. Crude oil prices, however, are on a decline over the last few weeks over concerns of a supply glut. Boeing expects crude price to remain around US$60 per barrel in 2019. Inability to pass on high costs has been another bane for domestic carriers. <br/>
