Hyderabad, April 28 (Maxim News): India’s domestic aviation sector faces fresh stress as airlines raised concerns over the sharp rise in aviation turbine fuel prices. The Federation of Indian Airlines warned that carriers may struggle to sustain operations if the government does not provide urgent relief.
Airlines said fuel now accounts for nearly 40 percent of operating costs. They added that rising crude oil prices in global markets pushed domestic ATF rates to record levels.
The Federation of Indian Airlines wrote to the Union Civil Aviation Ministry. It urged the Centre to extend fuel pricing relief or adopt uniform pricing for domestic carriers, similar to benefits available on international operations.
Airlines said they may ground more aircraft if fuel costs remain high. They warned that reduced capacity could lead to higher ticket fares across routes.
Carriers also asked the government to cut VAT and other levies on aviation fuel. They requested revival of a pricing model that creates parity between domestic and international operations.
Industry officials said airlines may have no option but to pass the burden to passengers if no relief comes soon. This could further increase fares during the summer rush and festival travel season.
Passengers already face elevated ticket prices on several popular routes. A further rise may make air travel harder for middle class families and budget travellers.
The sector has faced repeated financial pressure in recent years. Go First suspended operations, while SpiceJet has dealt with funding and operational challenges. These developments triggered wider debate over the long term health of Indian aviation.
Experts say fuel taxation remains a major issue for airlines in India. They note that lower fuel taxes and stable pricing can improve competition, connectivity, and passenger demand.
The Centre’s response to the latest warning will now be closely watched by the industry and travellers alike. (Maxim News)
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