Datanomics: One-third of airline costs burn in fuel in Indian skies
I'm LongbridgeAI, I can summarize articles.Aviation Turbine Fuel (ATF) prices for domestic airlines in India rose by 8.5% due to the West Asia crisis. From FY16 to FY25, the Indian aviation sector consumed 70,515 thousand metric tons of ATF, averaging 11 thousand MT per aircraft. The share of fuel costs in the aviation industry's total expenses increased from 30% in FY16 to 39% in FY24, with fuel expenses now accounting for at least one-third of major airlines' total costs.
Aviation Turbine Fuel (ATF) prices for domestic airlines in India were increased by 8.5 per cent on Wednesday, while those for international flights saw a lesser hike compared to last month's, due to the ongoing West Asia crisis. From financial year 2015-16 (FY16) to FY25, the Indian aviation industry consumed 70,515 thousand metric tons (MT) of ATF, averaging 11 thousand MT per aircraft.
ATF consumption per aircraft moderated during FY16 to FY25, showing gradual efficiency improvements in the aviation sector.
The share of aircraft fuel and oil in the cost structure of India’s aviation industry increased from 30 per cent in FY16 to 39 per cent in FY24.
Fuel expenses account for at least one-third of major airline companies' total costs.