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Air India, IndiGo, SpiceJet warn of 'stopping operations' amid fuel ...
The concerns come amid rising global oil prices triggered by tensions in West Asia and airspace restrictions that have driven up operating costs April 28, 2026 / 15:59 IST The FIA has urged the government to extend a uniform fuel pricing mechanism across domestic and international operations, similar to the earlier crack band framework Indian airlines warn of possible shutdowns due to high ATF pricesCarriers seek govt relief on fuel prices, financial aidHigher oil prices and taxes raise airlines’ operating costsDid our AI summary help? India’s leading carriers Air India, IndiGo and SpiceJet have warned the government that the aviation sector is under “extreme stress” and could be pushed to the brink of “stopping operations”, PTI reported, as they pressed for relief on Aviation Turbine Fuel (ATF) pricing and financial support.The concerns come amid rising global oil prices triggered by tensions in West Asia and airspace restrictions that have driven up operating costs, particularly for long-haul flights. ATF makes up nearly 40 percent of an airline’s operational expenses, intensifying the financial strain.In a letter dated April 26 to the civil aviation ministry, the Federation of Indian Airlines (FIA), which represents the three carriers, flagged the “unprecedented rise in jet fuel prices” and the widening crack, or differential, between crude oil and ATF.“... any ad hoc pricing (domestic vs international) and/or irrational increase in the price of ATF will result in unsurmountable losses for airlines and will lead to grounding of aircraft, resulting in cancellation of flights,” the federation said.“In order to survive, sustain and continue operation, we request your urgent intervention for immediate and meaningful financial support to tide over the current situation,” it added.The FIA has urged the government to extend a uniform fuel pricing mechanism across domestic and international operations, similar to the earlier crack band framework. Airlines have also sought a temporary deferment of the 11 percent excise duty on ATF.“With the abnormal increase in ATF prices from the pre-crisis period, adding rupee depreciation to the increased prices, the 11 percent excise duty also increases manifold for the airlines and adds to the ATF price as a big impact on airlines,” the letter said.While the government capped the ATF price hike for domestic operations at Rs 15 per litre last month, international operations saw a sharp increase of Rs 73 per litre, worsening...
Air India, IndiGo, SpiceJet, ATF: 'Industry On Verge Of Stopping Ops ...
The Middle East crisis has rung alarm bells in India's aviation sector with many airlines raising concerns that they are on the verge of "stopping operations" due to high fuel prices. At least three airlines including the Tata-owned Air India have asked the government to revise the price of aviation turbine fuel (ATF), which adds to about 40 per cent to an airline's operating cost."... Any ad hoc pricing (domestic vs international) and/or irrational increase in the price of ATF will result in insurmountable losses for airlines and will lead to grounding of aircraft, resulting in cancellation of flights," the Federation of Indian Airlines (FIA) said in a letter to the Civil Aviation Ministry.The FIA represents Air India, IndiGo and SpiceJet."In order to survive, sustain and continue operation, we request your urgent intervention for immediate and meaningful financial support to tide over the current situation," it said in the letter dated April 26.Flights operating on long-haul routes are the most affected, the federation said. For relief, they asked the ministry to use a fuel pricing method that's uniform across both domestic and international operations - as was done in the past with what is called a "crack band"."Crack band" refers to a mechanism of ATF pricing that stops extreme differences between the price of crude oil and refined ATF.The government limited the hike in ATF price to Rs 15 per litre for domestic operations, but for international operations, it rose by Rs 73 per litre.Another relief sought by the airlines is a temporary deferment of excise duty on ATF, which is 11 per cent."With the abnormal increase in ATF prices from the pre-crisis period, adding rupee depreciation to the increased prices, the 11 per cent excise duty also increases manifold for the airlines and adds to the ATF price as a big impact on airlines," the federation said.The concerns raised by the domestic airlines are a direct result of the US-Iran war and Iran's blockade of the Strait of Hormuz shipping lane, from where about a fifth of the world's oil passes.Tankers traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran. Most of that oil goes to Asia. Any disruption to traffic through the strait is highly disruptive to the oil trade.
Indian airlines warn of shutdown risk amid ATF price surge - MSN
The Federation of Indian Airlines, representing Air India, IndiGo and SpiceJet, has warned that the industry is 'on the verge of closing down' due to record aviation turbine fuel (ATF) prices ...
Air India, IndiGo, SpiceJet warn of shutdown as fuel crisis deepens
"The airline industry in India is under extreme stress and is on the verge of closing down or of stopping its operations," it added. Fuel costs now biggest burden Airlines said nearly 40 per cent of their operating expenses are now linked to jet fuel procurement.
