The airline industry in India is under great stress and is on the verge of closure or stopping its operations. This bad condition of the aviation sector has been made worse by the ongoing war in West Asia and the huge increase in the prices of ATF. The federation further said that due to the increase in the price of ATF by Rs 73 per liter, the functioning of international flights "total loss deal" Has become.
The price of ATF for international flights was increased by Rs 73 per liter, due to which international flights as well as domestic flights became a complete loss-making deal and the aviation sector suffered huge losses in April 2026." FIA said. The April 2026 prices do not ensure any parity between domestic and international flights," The airline organization further said.
price increase
The new prices of aviation turbine fuel have come at a time when there is a crisis in the supply of oil and gas due to America and Israel’s war with Iran. Due to this conflict, there has been blockage in the Strait of Hormuz, which is a vital route for about 20% of the world’s energy supply. The airline body said the ongoing dispute has pushed up the price of Brent crude from US$72/BBL to US$118/BBL, and caused the price of ATF (MOPAG + premium) to rise from US$87.24 to a high of US$260.24/BBL (an increase of 295%). Currently its price is US$ 235.63 / BBL, which is much higher than the prices of March 2025.
Airlines asked for help from the government
FIA further said that the cost of ATF usually constitutes about 30 to 40 percent of the total expenses of the airline. But, due to rising prices due to the US-Iran war, the increase in ATF expenses has now increased the airline’s operating expenses to 55 to 60 percent. Apart from this, the organization further said that the rupee has also weakened further and reached its lowest level, which has put even more burden on the airlines in terms of ATF prices.
To deal with this current crisis, the airline organization has given three suggestions to the government. The profit that refineries make from converting crude oil into final products. Temporary exemption in excise duty on Aviation Turbine Fuel (ATF). Currently, 11 percent duty is levied on ATF for domestic flights.
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