The Union Cabinet has approved a ₹10,000-crore fund to stabilise aviation turbine fuel prices and cushion airlines from global oil market shocks
The move comes at a time when crude oil prices remain volatile due to geopolitical uncertainty in West Asia. Higher fuel costs have emerged as a key concern for airlines, affecting profitability and increasing the risk of fare hikes for travellers.
The new fund will act as a financial safety net, allowing the government to provide support when jet fuel prices rise sharply. By reducing the impact of fuel cost spikes, the scheme aims to help airlines maintain affordable fares and stable operations.
Industry stakeholders have long argued that Indian carriers are particularly vulnerable to ATF price fluctuations because fuel accounts for a large share of operating expenses. The latest decision is expected to provide greater confidence to airlines as they expand fleets and routes to meet rising travel demand.
The aviation sector has recorded strong passenger growth in recent years, making cost stability an important factor for continued expansion. Analysts say the fund could help airlines better manage financial risks while protecting consumers from abrupt fare increases.
The scheme is expected to provide much-needed support to carriers during periods of elevated fuel prices and market uncertainty.
Also Read: Israel and Lebanon continue truce
