Indian airlines warn of cuts as ATF prices hit decade high

ATF price surge

The Federation of Indian Airlines reported that aviation turbine fuel (ATF) prices are at the highest level in a decade, with the fuel component of airline operating costs rising from a historical 30‑40% to about 55‑60%. The Civil Aviation Minister said the rise is linked to the West Asia crisis, noting a month‑on‑month increase that exceeded 14%.

Airline actions

IndiGo announced a revision of its fuel charges for all new bookings made from October 6 in response to the sharp ATF price increase.

Government relief request

The Federation of Indian Airlines urged the government to provide urgent ATF support, including cost‑plus pricing, excise duty relief, VAT reduction on ATF, and concessions on landing and parking charges.

The government is in talks with airlines and oil marketing companies to address the impact of the ATF price rise and has supported regional air connectivity through the UDAN scheme with viability gap funding.