Indian airline industry warns 'whole sector on verge of collapse' over jet fuel : Indian Aviation NewsAviation India

Wednesday, April 29, 2026

Indian airline industry warns 'whole sector on verge of collapse' over jet fuel

The Federation of Indian Airlines (FIA) says the aviation industry in India is "on the verge of closing down".

The FIA has appealed for support from the Ministry of Civil Aviation, claiming that jet fuel costs are placing severe pressure on the sector. The FIA, which represents major domestic carriers including IndiGo, SpiceJet and Air India, said this pressure has pushed the airline sector close to collapse.

The FIA noted that, owing to the rise in the cost of jet fuel by Rs.73 (£0.60) per litre for both international and domestic services, operations have become "completely unviable". This cost increase has led to "significant losses for the aviation sector in April 2026", the FIA said.

It said: "The airline industry in India is under extreme stress and is on the verge of closing down or of stopping its operations. The dire condition of the Aviation Sector has been exacerbated by the West Asia War and the exorbitant increase in the price of ATF [Aviation Turbine Fuel]." The April 2026 pricing results "do not ensure parity between domestic and international operations", the airline organisation added.

The updated charges for aviation fuel come following the oil and gas supply emergency triggered by the US and Israel's conflict with Iran. The continuing hostilities have resulted in a blockade of the Strait of Hormuz, a critical route for approximately 20 per cent of the world's supply.

28/04/2026 Ethan Blackshaw/Emily Wright/Mirror

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