NEW DELHI – As global oil prices keep climbing, with Crude surpassing $111 and there is no relief ahead, and now Indian airlines are in dire straits amid mounting financial pressure.
Federation of Indian Airlines, representing major carriers including IndiGo, SpiceJet and Air India, says operations have become “completely unviable” and urgent government intervention is needed.
The crisis follows a sharp increase of Rs.73 per litre in aviation turbine fuel prices for domestic and international services, a jump the FIA says has triggered major losses in April 2026 and placed the entire sector under extraordinary stress. According to the industry body, airlines are now dangerously close to halting operations if relief does not arrive.
At the center of the turmoil is the escalating West Asia conflict, which disrupted global oil flows and sent energy markets into chaos. The blockade of the Strait of Hormuz fueled a surge in crude prices, with Brent jumping from $72 to $118 per barrel.
Aviation fuel prices exploded even more dramatically. FIA says ATF prices soared from $87.24 per barrel to a peak of $260.24, before easing slightly to $235.63 still representing an extraordinary 295% surge compared with March 2025 levels. That spike has transformed airline economics, with fuel costs swelling from a normal 30–40% share of expenses to a crushing 55–60%.
Also, the weakening Indian rupee has intensified pressure by raising import-linked fuel costs even further. Officials warned the combined impact of runaway fuel prices, currency depreciation and geopolitical turmoil has pushed the industry to the edge, raising fears of severe disruption across Indian aviation unless emergency support is delivered quickly.
