State-owned oil companies today hiked jet fuel prices by a steep 3.8 per cent. The price of aviation turbine fuel (ATF), or jet fuel, at Delhi's T3 airport was raised by Rs 2,845 per kilolitre (kl), or 3.8 per cent, to Rs 61,115 per kl.

Jet fuel makes up for 40 per cent of an airlines' operating cost and the steep hike in prices will raise burden on the cash-strapped airlines.

However, most analyst are of the view that, the recent hike in jet fuel price will lead to ticket price hike up to 20%. Analysts have also indicated that management of the airline companies are also eyeing an airfare hike depending on the route