ATF excise cut unlikely to give airlines relief, reduce customers' airfares

Govt raised customs duty on ATF last month, which will push up prices in the next revision

The cut in excise duty on aviation turbine fuel (ATF) will give airline operators, battling high costs in times of rising crude oil prices, only a temporary relief.

Fliers are unlikely to see reduced airfares after the hike in basic customs duty from September 26 is factored in the ATF prices in the coming weeks.

The combined impact of higher Customs duty and reduced excise duty might cancel each other out, airline officials and experts said. The impact on government’s revenue would also negligible because of the cross incidence of two duties in opposite directions, sources said.

SpiceJet Chairman and Managing Director Ajay