'Industry in extreme stress, verge of shutting down': Federation of Indian Airlines seeks urgent help from government
The Federation of Indian Airlines has warned the government that the airline industry is under extreme stress and nearing a shutdown due to soaring Aviation Turbine Fuel prices. The surge in fuel costs, driven by the US-Iran conflict and global oil market disruptions, has made both domestic and international operations financially unviable. The FIA has urged immediate policy interventions, including tax relief and pricing reforms, to stabilize the sector.
- ▪The Federation of Indian Airlines claims the industry is on the verge of shutting down due to extreme financial stress.
- ▪Aviation Turbine Fuel prices increased by Rs.73 per litre, making flight operations domestically and internationally unviable.
- ▪The ongoing West Asia conflict has caused Brent Crude prices to rise from $72 to $118 per barrel, drastically increasing ATF costs.
- ▪ATF now accounts for 55 to 60 percent of airline operating costs, up from the usual 30 to 40 percent.
- ▪The FIA has recommended reinstating the crack band, deferring excise duty, and reducing VAT in key states to alleviate financial pressure.
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'Industry in extreme stress, verge of shutting down': Federation of Indian Airlines seeks urgent help from governmentIn a letter to the Centre, the FIA adds that this stress has brought the airline industry to the verge of shutting down.Updated on: Apr 29, 2026 3:27 AM ISTEdited by Danita YadavShare viaCopy link The Federation of Indian Airlines has called on the Ministry of Civil Aviation for urgent assistance, stating that the current pricing of Aviation Turbine Fuel is causing extreme stress on the industry. In a letter to the Centre, the FIA adds that this stress has brought the airline industry to the brink of collapse.. In a letter to the Centre, the FIA adds that this stress has brought the airline industry to the verge of shutting down.
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