A reduction in value-added tax on aviation turbine fuel (ATF) by Maharashtra and Delhi could offer a meaningful cost reprieve to Indian airlines, according to HSBC, which said the move affects airports accounting for roughly 37% of the country’s domestic air traffic.
The brokerage estimates the tax cuts could lower fuel costs by Rs 1,200 crore to Rs 1,500 crore for InterGlobe Aviation, which operates the IndiGo brand. SpiceJet could save Rs 100 crore to Rs 200 crore, while Air India may see a reduction of Rs 800 crore to Rs 1,000 crore in its fuel bill. Akasa Air could benefit