State-run fuel retailers on Saturday slashed jet fuel or ATF rates by a further 7 per cent.

The latest cut is the eleventh reduction in aviation turbine fuel (ATF) since September 2008, helping prices slide by about 61% since August last.

It should be noted that ATF prices peaked to Rs 71,028.26 per kilolitre in Delhi in August 2008 when international crude prices touched $147 a barrel. ATF makes up nearly
40% of airlines' operating costs.

With latest announcement, i. e. from March 1, jet fuel price will go down Rs 2,052 per kilolitre to Rs 27,106 in Delhi, while it will cost Rs. 27,861 per kilolitre in Mumbai. Similarly in Kolkata and Chennai, ATF would now cost respectively Rs 34,847 and Rs 30,317 per kilolitre.

However, the airline industry is showing no indications of reducing air fares as of now.

Offering reaction on latest move, airline companies said they would use the opportunity to cover accumulated losses and may not lower air fares in the near term.