GUWAHATI: India’s aviation sector is facing mounting financial pressure as rising fuel costs and global geopolitical tensions strain airline operations, prompting urgent calls for government support.
The Federation of Indian Airlines (FIA), which represents major carriers such as Air India, IndiGo and SpiceJet, has written to the Ministry of Civil Aviation (MoCA) seeking immediate intervention over escalating Aviation Turbine Fuel (ATF) prices.
In its communication, the FIA warned that the industry is under “extreme stress,” with the ongoing West Asia crisis pushing up global oil prices and increasing operational challenges. Airspace restrictions have further compounded costs, particularly for long-haul international routes.
ATF, which typically accounts for around 40 per cent of an airline’s operating expenses, has now surged to nearly 55–60 per cent, according to the federation. The sharp increase has created what airlines describe as “completely non-operable conditions.”
The situation has been worsened by a steep rise in ATF prices for international operations-reportedly up by ₹73 per litre- as well as the depreciation of the Indian rupee, which has added to cost pressures.
The FIA cautioned that without timely intervention, airlines could face severe financial strain, with some potentially being forced to scale down or suspend operations.