The Federation of Indian Airlines (FIA) warns of shutdown risk as ATF prices increase. Air India, IndiGo and SpiceJet seek government relief amid the tensions. Scroll down for details.
Published: April 28, 2026 5:28 PM IST
ATF prices: The aviation sector of India is facing a serious concern, as the Federation of Indian Airlines (FIA) has warned that the operations may stop if urgent relief is not provided. Important airlines like Air India, IndiGo, and SpiceJet have now approached the government to seek relief on the increasing prices of the aviation turbine fuel (ATF).
Worry for airlines
According to the Federation of Indian Airlines (FIA), the industry is under “extreme stress” because of the rising costs of fuel and multiple operational challenges. The ATF makes up almost 40 per cent of the total expenses of an airline. The increase in fuel prices recently, along with the ongoing tensions in West Asia, has reportedly made the functions extremely expensive, especially for flights on international routes.
What have the airlines asked for?
The Federation of Indian Airlines (FIA) has asked the government to reduce the prices of the aviation turbine fuel (ATF). Alongside this, the federation has asked to provide financial support and suspend the 11 per cent excise duty on jet fuel. In addition, the FIA has urged the ministry to come up with a uniform pricing system for both domestic and international flights.
“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,” the letter on April 26 read.
Rising costs of ATF
Last month, the prices of the aviation turbine fuel (ATF) increased by almost Rs 73 per litre for international operations. The airlines in the statement mentioned that this has resulted in heavy losses to the companies. In addition, the FIA warned that if the situation continues to exist, the aircraft may be grounded and further flights may be cancelled.
The high taxes are now an addition to the existing problem, as per the FIA. In Delhi, the Value Added Tax (VAT) on jet fuel is almost 25 per cent, and in other states, it goes almost up to 29 per cent.
“The other major aviation cities, viz. Mumbai, Bangalore, Hyderabad, and Kolkata range between 16 per cent and 20 per cent. These 6 cities cover more than 50 per cent of airlines’ operations within India,” said the federation.
FIA’s urge to the ministry
“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 official statement read.
The Federation of Indian Airlines (FIA) has urged the government to act on this quickly and avoid the potential crisis.
(With inputs from PTI)
