With little room to raise fares\, airline profit hinges on aviation turbine fuel

The recent 14% reduction in prices of aviation turbine fuel, which accounts for up to 40% of airline expenses, will come as a major breather for India’s loss-hit carriers.

With cut-throat competition and excess capacity making it impossible for airlines to increase fares, their profitability is now even more linked to fuel price movements.

ET charts the linkage between fuel prices and airline profits.

1. WHEN FUEL PRICES RISE, AIRLINE PROFITS TAKE A BEATING…

2. AIRLINES FIND THEMSELVES UNABLE TO TACKLE FUEL COSTS. HERE’S WHY