For the second time this month, state-run oil companies on Tuesday cut jet fuel prices to ease the burden on cash-strapped airlines.

Aviation turbine fuel (ATF) prices in Delhi was reduced by Rs 649 or 1.6 per cent to Rs 39,319 per kilolitre, effective midnight tonight, an official of Indian Oil Corp, the nation's largest oil firm, said today.

The ATF price in Kolkata has been cut by Rs 663 per kl to Rs 47,558 and
that in Chennai by Rs 684 to Rs 43,354, the official said.

In Mumbai, ATF rates were reduced by Rs 677 to Rs 40,560 per kl.

On December one, IOC, Bharat Petroleum and Hindustan Petroleum had reduced jet fuel rates by one per cent on easing international oil prices.

The two consecutive price reductions come on the back of 2.4 per cent increase in jet fuel prices last month.

Jet fuel constitutes roughly 40 per cent of the operating cost of an airline and the reduction in fuel rates would help ease the burden of Indian carriers, most of whom are loss making.

That brings down the cost by around 5% for airlines. Does it mean they can show some profit yet ? I disagree.  Airlines have been in hole by much more than 10% and they need to take substantial cuts further to make long term profit trends.

For example Jet is overstaffed , clearly visible at the airports. I been to mumbai airport and a group of 6 Jet AIr guys smoking and talking while one of them helped us .