India’s leading airlines have warned of a serious financial crisis due to rising aviation turbine fuel (ATF) prices and have sought urgent government intervention to avoid operational disruption.
Air India, IndiGo, and SpiceJet, represented by the Federation of Indian Airlines (FIA), said the sector is under “extreme stress” as fuel costs continue to rise. They have urged the Centre to revise pricing policies and provide immediate relief measures.
ATF accounts for nearly 40% of airline operating expenses, making price volatility a major challenge. Airlines say global oil price swings and supply issues have further increased costs.
The carriers have also called for a uniform ATF pricing structure across domestic and international routes, saying current differences are adding to financial strain. They have suggested temporary tax relief on jet fuel to ease pressure.
The FIA warned that without timely intervention, airlines could be forced to cut flights or even suspend parts of their operations, affecting connectivity across the country.
While passenger demand remains strong, airlines say high costs are squeezing profitability. Industry observers note that the warning reflects growing financial stress in the aviation sector.
The government is expected to examine the demands as pressure builds to stabilize the industry and prevent possible disruption to air travel services.
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