Rising Fuel Costs Push Indian Aviation Sector Toward Crisis
Major Indian airlines including Air India, IndiGo, and SpiceJet—which together account for about 95% of India’s aviation market—have warned the government that the sector is nearing a point where operations could be severely disrupted, according to Press Trust of India.
The ongoing conflict and the near closure of the Strait of Hormuz have driven global oil prices higher. This has had a significant impact on India, the world’s fifth-largest aviation market.
In addition, airspace restrictions—especially on long-haul routes—have further increased operational costs for airlines.
Aviation fuel (ATF), which accounts for nearly 40% of an airline’s operating expenses, has seen price increases, prompting airlines to request a revision in fuel pricing.
Meanwhile, the Federation of Indian Airlines has urged the Ministry of Civil Aviation to revise the fuel pricing mechanism for both domestic and international operations.
