Airlines flying high as ATF slashed

New Delhi: The airports are full and so are the flights. However, every airline is in the red this quarter. Still, there's hope, softer crude has led to a fall in aviation fuel prices.
The prices are down by up to Rs 3,000 per kilolitre for the second time since October. Fuel prices on Friday make up almost 40 per cent overall cost. So these cuts could shore up their margins.
"Earning margins are expected to improve by four-five per cent," said Kapil Kaul, CEO, CAPA India.
However, don't expect any cut in ticket prices as airlines have gone ahead and hiked prices by 15 per cent to 20 per cent.
Most airlines these days don't have fixed ticket prices and keep juggling them based on demand. Besides, most passengers don't even know that the tickets they are booking now are more expensive.
However, this is expected to further boost their revenues, which will lead to better earnings in the third quarter.
03/11/06 Arijit Banerjee/NDTV.com

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