Aviation Turbine Fuel prices rise for second consecutive month

Aviation Turbine Fuel (ATF) prices have increased for the second consecutive month, rising by 6.28 rupees per liter as of September 1, 2026. This hike brings the price of jet fuel to 121.28 rupees per liter, up from 115 rupees per liter in August.

This follows a previous increase in August, where prices rose by 5 rupees per liter. Over the last two months, the cost of ATF has climbed by approximately 11.28 rupees per liter. Fuel typically accounts for 35 to 40 percent of the total operating expenses for domestic airlines.

While the rising fuel costs place significant pressure on airline margins, an immediate increase in flight ticket prices is not guaranteed. Airlines consider various factors when setting fares, including passenger demand, route competition, and seat availability. However, sustained high fuel costs may eventually lead to higher airfares as companies seek to offset increased operational expenses.