The Hindu Business Line : `Frequent rise in ATF costs impacts aviation sector'

THE aviation sector witnessed a lower growth rate at 16.5 per cent in April-June this financial year, compared to 26 per cent in the corresponding period last year, according to an Associated Chamber of Commerce and Industry's Eco Pulse Study.

The study has cautioned that the infrastructure bottleneck and the frequent increase in the prices of aviation turbine fuel will make it difficult for the aviation industry to achieve significant growth.

The 12-13 per cent hike in ATF prices has started impacting flying cost and as a result, the airlines have increased the ticket prices by 10 per cent, says the study.

Domestic air traffic grew by 17.4 per cent during the first quarter of the current fiscal while international air traffic grew at 14.5 per cent for the same period.

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