The Federation of Indian Airlines has written to the government urging urgent intervention as soaring jet fuel costs push carriers to the brink.
The Federation of Indian Airlines (FIA), which represents Air India, IndiGo and SpiceJet, has written to the Ministry of Civil Aviation warning that airline operations in India are “on the verge of closing down.” In a letter dated April 26, 2026, the FIA stated that “urgent support is required for ATF pricing to continue airline operations,” citing unprecedented volatility in Aviation Turbine Fuel (ATF) prices. The body said fuel costs have risen from comprising 30–40% of airline operating expenses to 55–60%, describing current conditions as “non-operable.” It criticised what it called ad-hoc ATF pricing, saying it is “creating severe imbalance in domestic and international operations and rendering airline networks unviable and unsustainable.”
As short-term relief measures, the FIA has asked the government to temporarily remove the 11% excise duty on ATF for domestic flights and restore the earlier “crack band” pricing formula. The body also flagged a rise of Rs 73–75 per litre in ATF prices for international operations, making several long-haul and regional routes “completely unviable” as Indian carriers compete against foreign rivals operating from lower-cost fuel hubs. Industry sources indicate airlines may reduce frequencies on low-yield routes following the next ATF price revision due in May 2026, with short-haul sectors expected to bear the greatest impact.
Source: The Hindu BusinessLine / NewsBytes / Goodreturns / Siasat Daily
