India’s airline industry has warned of severe financial stress due to rising aviation turbine fuel (ATF) prices, raising concerns that operations could be disrupted without urgent government intervention.
Major carriers including Air India, IndiGo, and SpiceJet, through the Federation of Indian Airlines (FIA), have told the government that the sector is “on the verge of stopping operations” as fuel costs continue to rise sharply. They have sought immediate policy support from the Ministry of Civil Aviation.
ATF makes up nearly 40% of airline operating costs, making the industry highly sensitive to fuel price fluctuations. Airlines say global crude volatility and geopolitical tensions have pushed costs higher, worsening financial pressure.
The airlines have also flagged pricing differences between domestic and international operations, arguing that this creates additional losses. They have demanded a uniform pricing system and temporary relief measures, including tax deferments on aviation fuel.
The FIA warned that if costs are not controlled, airlines may be forced to reduce operations, cancel flights, or even ground aircraft, severely impacting air connectivity.
Also Read: India ranks 5th globally in defence spending
