Airlines seek urgent help from Govt over rising ATF prices

The Indian airlines have asked the government for urgent help in view of the rising aviation turbine fuel (ATF) prices, and said the industry is under extreme stress and are on verge of closing down or stopping its operations.

Federation of Indian Airlines (FIA), comprising of Air India, IndiGo & SpiceJet, wrote to Ministry of Civil Aviation (MoCA) requesting urgent support required for ATF pricing to continue airlines operations amid West Asia crisis.

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In its letter to the government, FIA seeks temporary deferment of Excise duty on ATF, reduction of VAT in key states, and reinstatement of crack band in line with Pre agreed formula.

FIA said airline industry in India is under extreme stress and are on verge of closing down or stopping its operations as the ATF Prices for international operations increased by 73 rupees per litre.

FIA said the unprecedented increase in ATF cost has moved the airline’s operation from 30-40% to 55-60% creating completely non operatable conditions for airlines. Rupee has also depreciated further to its lowest level, adding additional burden on the airlines in terms of ATF pricing

The recent surge due to the Iran War marked the first time jet fuel prices crossed the Rs 2 lakh per kilolitre level, surpassing previous highs recorded during the global energy crisis following the Russia-Ukraine conflict in 2022.

The central government has updated ATF regulations to permit blending with synthesised hydrocarbons under revised fuel standards. The move aims to support sustainable aviation fuel (SAF) development and cleaner long-term alternatives.

Crude oil prices rose sharply by 45.5% in March due to the ongoing West Asia crisis. The oil marketing companies (OMCs) raised ATF prices by only 9.2% sequentially in April 2026 for domestic operations.