InvestorQ : How will the cut in jet fuel prices in India impact the fortunes of airline companies like Indigo Airlines and Spice Jet?
Aditi Sharma made post

How will the cut in jet fuel prices in India impact the fortunes of airline companies like Indigo Airlines and Spice Jet?

Answer
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Aashna Tripathi answered.
7 months ago


Jet fuel price cut is good news but currently the biggest challenge is the ability to fly without restrictions. Price of Jet Fuel was slashed by the oil market companies to the tune of 12%. The OMCs also shifted to fortnightly review of prices and this cut in jet fuel prices was in sync with the falling crude prices globally. However, airline companies are grappling problems like domestic travel ban, curbs on tourism and cancellations of business seminars and conferences. Most airlines are facing demand crunch after a very long time. Any jet fuel price cut may not really be effective for airlines in the short run. For now, the primary focus is getting the economy up and running once again so that travel demand is back.