ATF - fuel for aircrafts - price has increased to about Rs 50 per liter as per today's news. And I read today that 737 aircraft fuel economy is about 0.17nautical mile/liter = 0.31km/liter. And this translates to a fuel cost of Rs 150/km for the aircraft.
And they say, fuel costs are about half the total cost. So the total cost is about Rs 300/km. Passenger tickets cost about Rs 6/km for travel within India. So if each aircraft carries 50 passengers paying full fare, the airline breaks even. Since airlines seem to be performing poorly, are 100 seater aircrafts carrying less than 50 to 60 paid passengers?
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