June 21, 2026 03:01 pm (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
'Italy and I never beg': Meloni fires back at Trump over G7 photo claim | No more 'brother': Stalin's formal birthday greeting to Rahul reflects deepening rift | TMC seeks disqualification of 20 rebel MPs, Abhishek says 'membership should go' | Nara Lokesh pitches Andhra Pradesh as investment hub during Kolkata visit, sets $2.4 trillion economy goal | 'Least restrictive option': Setback for Telegram as Delhi HC backs Centre's ban ahead of NEET-UG re-test | Fortuner torched, BJP leaders burnt alive: Sand mining feud ends in triple murder in Chhattisgarh | 'If Modi is the leader and India is attacked, we'll be there': Trump's strong assurance at G7 | 'Safety of Indian seafarers of utmost importance': PM Modi's strong message to Trump at G7 | Trump says Iran deal 'not final', threatens fresh strikes if Tehran ‘doesn’t behave’ | G7 declares war on global drug cartels, unveils major anti-trafficking plan
Airlines warn operations at risk as fuel prices surge, seek urgent government intervention.
Jet Fuel
Representational image. Photo: Unsplash/Zoshua Colah (Resized with Google Gemini)

Airlines sound SOS to Centre over soaring ATF costs, say operations becoming unsustainable

| @indiablooms | Apr 28, 2026, at 06:39 pm

India’s aviation sector has raised serious concerns over rising fuel costs, warning that continued price pressure could disrupt operations across multiple carriers.

Airlines, represented by the Federation of Indian Airlines, have approached the government seeking urgent intervention as aviation turbine fuel (ATF) prices surge amid global geopolitical tensions.

Airlines flag risk of operational disruptions

Leading carriers, including Air India, IndiGo and SpiceJet, have cautioned that escalating fuel prices could make several routes financially unviable.

In a communication to the Civil Aviation Ministry, the industry body stated that any abrupt or disproportionate increase in ATF pricing could lead to significant financial losses, potentially resulting in grounded aircraft and cancelled flights.

The federation highlighted that fuel costs, which typically account for around 30–40 percent of airline expenses, have now risen sharply, placing additional strain on already tight margins.

Soaring ATF prices

Airlines pointed out that ATF prices have seen a steep increase, especially for international operations.

While domestic fuel price hikes have been capped, international routes have witnessed a much sharper rise.

The disparity has added to cost pressures, particularly for long-haul flights where fuel consumption is significantly higher.

The industry also noted that fluctuations in refining margins have contributed to elevated ATF prices, even during periods when global crude prices show signs of easing.

Call for immediate govt relief

To manage the crisis, airlines have urged the government to introduce immediate financial relief measures.

These include a temporary suspension of excise duty on ATF, currently at 11 percent, and a more balanced pricing framework for both domestic and international operations.

The federation also recommended adopting a uniform pricing mechanism, similar to earlier systems that limited extreme variations between crude oil and refined fuel prices.

Impact of global oil supply disruptions

The surge in fuel costs has been linked to disruptions in global oil supply chains, particularly due to tensions surrounding the Strait of Hormuz.

This critical maritime corridor carries a significant share of the world’s oil, and any restrictions or instability in the region directly influence fuel prices worldwide.

The ongoing situation in West Asia has contributed to volatility in crude oil markets, which has in turn driven up aviation fuel costs.

Pressure on routes and capacity

Airlines have indicated that sustained high fuel prices could force them to reassess route viability, reduce capacity, or adjust fares.

They noted that the current cost environment is affecting cash flows and limiting operational flexibility, particularly on international routes where pricing adjustments are more constrained.

As fuel costs continue to rise, the aviation sector remains under pressure, with airlines seeking policy support to stabilise operations and manage escalating expenses.
 

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
RBI announces repo rate cut Jun 06, 2025, at 10:51 am
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm