New Delhi, Oct. 31: Oil companies today slashed the price of jet fuel by about 17 per cent, or over Rs 9,400 per kilolitre, providing much needed relief to the beleaguered aviation industry.

In another boost to aviation, the government abolished the five per cent customs duty on jet fuel.

However, the airlines are unlikely to pass on the benefits to flyers as they will continue to suffer losses even after the relief measures.

A Jet Airways official said, “We are discussing what we can do. However, there is very little possibility of any price cut as we are running a loss of Rs 4 crore per day.”

Sources in GoAir, too, said that the airline was unlikely to reduce prices.

Partha Sarathi Basu, the chief financial officer of SpiceJet, said, “We will discuss the issues on Monday. Now that ATF prices have to be revised every fortnight, we will study the situation and take a decision.”

SpiceJet today reported a net loss of Rs 198 crore for the second quarter ended September 30.

The government had earlier allowed Jet Airways, Kingfisher Airlines and Air India to clear their outstanding fuel bills, amounting to Rs 2,900 crore in six interest-free monthly instalments.

Jet fuel prices have dropped 20 per cent over the last two months.