Indian airlines are under mounting financial strain as aviation turbine fuel (ATF) prices surge, with industry stakeholders warning that continued cost pressures could push carriers towards operational disruption unless urgent support measures are introduced. The situation has raised fresh concerns over the stability of the aviation sector, which is already grappling with volatile global energy markets.
The Federation of Indian Airlines (FIA), representing major carriers such as Air India, IndiGo, and SpiceJet, has written to the Civil Aviation Secretary seeking immediate relief on fuel pricing. The industry body said the current cost environment has made both domestic and international operations increasingly difficult to sustain, cautioning that airlines are facing an acute financial squeeze that threatens operational continuity.
According to the FIA, disruptions in global crude oil supplies, partly triggered by ongoing geopolitical tensions, including the Iran conflict, have driven up petroleum product prices, with ATF witnessing a sharp escalation. The body said jet fuel remains the most significant cost driver for airlines, and the recent spike has severely impacted fare structures, route planning, and overall financial health.
The association said it remains committed to a transparent and market-linked pricing system for ATF but stressed the need for immediate corrective support to address extraordinary cost pressures. It referred to a proposed “crack band” mechanism, under which oil marketing companies would be able to recover increased crude costs along with margins through refined pricing spreads, ensuring cost recovery while maintaining sectoral balance.
29/04/2026 Business World
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