India’s aviation sector is facing mounting pressure as airlines caution the government about a potential halt in operations due to surging fuel prices linked to the ongoing Middle East crisis. Aviation turbine fuel (ATF), which accounts for nearly 40% of operational expenses, has become a major concern for carriers struggling to maintain profitability.
The Federation of Indian Airlines (FIA), representing major carriers like Air India, IndiGo, and SpiceJet, has urged the Civil Aviation Ministry to intervene. In a letter dated April 26, the body highlighted that inconsistent or steep increases in ATF pricing could result in severe financial losses and force airlines to ground aircraft.
Airlines have warned that without immediate support, the situation could lead to widespread flight cancellations and operational disruptions. The industry body stressed that differential pricing practices between domestic and international operations are further complicating cost structures for airlines already operating on thin margins.
Seeking urgent relief, the FIA has called for meaningful financial assistance and rationalization of ATF prices to ensure the survival and continuity of airline operations in the country.
