Multiple choice

Recently major airlines companies have reduced fuel surcharge by Rs.400/300 per ticket for which of the following reasons?

  1. Following a dip in aviation fuel prices.

  2. Less number of passengers in flights

  3. Government's new aviation policy

  4. None of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When aviation fuel prices decrease, airlines reduce fuel surcharges to maintain competitive pricing. Fuel surcharges are directly tied to the cost of aviation turbine fuel (ATF). When ATF prices drop, airlines pass some savings to customers through reduced surcharges, not due to passenger count or government policy.