New Delhi [India]: If the crude oil prices stay elevated, losses will become harder to absorb as Indian aviation is more sensitive, stated Sparta Commodities Senior Oil Analyst Abhishek Kumar.
In an exclusive conversation with ANI, he said, "If the fuel shock stays elevated, the risk is that losses become harder to absorb, flights are cancelled, and government intervention may be needed to protect connectivity and prevent deeper stress across the sector."
Kumar explained that India's aviation sector is particularly vulnerable because aviation turbine fuel (ATF) already forms a large part of operating costs and the market is highly price-sensitive. Airlines may increase fares on some routes, but they cannot fully pass on higher fuel costs without hurting demand.
"India is more sensitive because ATF is already a large cost item and the airline sector is highly price-sensitive. Airlines may raise fares on some routes, but they cannot pass through the full cost without hurting demand," he said.
He added that the impact is already visible, with airlines reducing discounts, increasing fares and reviewing weaker routes, along with a rising risk of capacity cuts. The industry has also started seeking policy support, including relief on ATF pricing and taxes.
03/05/2026 ANI/Economic Times
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