JET FUEL: India’s Air Passenger Traffic Rises on Year in April: Argus

India’s domestic air passenger traffic rose by 8% year-on-year to 14.3m in April but dipped 1% from March, according to the Civil Aviation Ministry, cited by Argus

• For January to April, passenger numbers increased nearly 10% to 57.5m, signalling a steady recovery in domestic air travel.
• This growth also supports rising jet fuel demand, which climbed 4% year-on-year in April to 202k b/d, based on data from the Oil Ministry.
• Despite increased demand, state-run refiners reduced jet fuel prices by 6% in April.
• Prices in major cities like New Delhi, Kolkata, Mumbai, and Chennai ranged from Rs83,575 to Rs92,504 per kilolitre, easing cost pressures on airlines, for whom fuel makes up 30-40% of operating expenses.
• However, military tensions with Pakistan in May disrupted aviation operations. Around 32 airports in northern and western India were temporarily shut due to heightened security risks, affecting both domestic and regional flight schedules.