ATF prices cut 5%, but no relief in fares

Another month, another revision in ATF prices. Oil marketing companies have reduced the prices of the fuel by close to 5%. But travellers need not rejoice. Airlines are adamant they won’t reduce fares as they still haven’t got the red out of their books.
Wolfgang Prock-Schauer, chief executive officer, Jet Airways, said, “The first priority for airlines is to get out of the red. ATF, even with the reduction in price, is 50% more expensive than it was last year. So, it is difficult for us to reduce fares.”
In fact, airlines have consistently said that they would have to raise the fares again before the festive season.
Jitender Bhargava, executive director, Air India, said, “When fuel prices were increasing month after month, airlines imposed surcharges, which was covering only a part of the additional burden. This is evident from the fact that all airlines continue to bleed. We will have to see ATF at much lower levels before reduction in fares can be looked at.”
The stand of airlines is not proving to be too popular among flyers.