Domestic airlines staring at headwinds over rising oil, US-Iran tensions

Domestic airlines are facing pressure with the increase in crude oil prices and soft demand which has limited price hikes to a single digit.

State oil marketing companies raised the price of jet fuel by 2.6 per cent from January 1. A kilolitre of jet fuel now costs Rs 64,423 and on a year-on-year (YoY) basis, it amounts to a 10 per cent price hike. 

Brent crude oil price surged 4 per cent on Friday, following tension between Iran and the US.

Prices are expected to stay at elevated levels due to production cuts by oil producing countries and expectation