India's major airlines have issued warnings of potential service suspensions if aviation turbine fuel (ATF) prices escalate further. A letter from the Federation of Indian Airlines (FIA), cited by Bloomberg, highlights the financial strain faced by carriers including Air India, IndiGo Airlines, and SpiceJet.
The FIA's appeal to the Civil Aviation Ministry, dated April 26, 2026, emphasizes the airlines' "extreme stress" and the risk of halting operations if fuel prices continue to rise. The federation urges the government to reinstate caps on ATF prices introduced during the pandemic and to reduce taxes that contribute to rising costs.
The airlines’ concerns are driven by the fact that fuel accounts for nearly 40% of their operating costs, compounded by a weakening rupee which increases expenses denominated in US dollars. Recent government measures, including a 25% cap on monthly ATF price increases and reduced airport fees, are temporary efforts to alleviate costs, but airlines warn that continued price increases could lead to cancellations and grounding of aircraft.
According to the IATA jet fuel price monitor, the global average jet fuel price stood at USD1,417 per tonne for the week ending April 24, 2026. Despite a slight decrease from the previous week, prices remain significantly higher compared to the previous year, underscoring ongoing volatility and financial risks for Indian airlines.
