The Federation ofIndianAirlines (FIA) has pleaded for urgent assistance from the Ministry of Civil Aviation, stating that currentjet fuel pricingis causing extreme stress on theindustry. In a letter to the Centre, the FIA, a premier industry body which represents major domestic airlines includingIndiGo, SpiceJet and Air India, said this stress has brought the airline industry to the brink of collapse.

"The airline Industry in India is under extreme stress and is on the verge of closing down or ofstopping its operations. The dire condition of the Aviation Sector has been exacerbated by the West Asia War and the exorbitant increase in the price ofATF[Aviation Turbine Fuel]," the letter reads.

The federation added that due to the increase in the price of ATF by Rs.73 (£0.60) per litre for both international and domesticflights, operations have become "completely unviable".

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This price increase has resulted in "significant losses for the aviation sector in April 2026," the FIA said, according to theHindustan Times.

The April 2026 pricing outcomes "do not ensure parity between domestic andinternational operations," the airline body added.

The revised prices for aviation turbine fuel come amid the oil and gas supply crisis brought on by the US andIsrael's war on Iran. The ongoing conflict has led to a blockade of the Strait of Hormuz, a vital passage for around 20% of the world's energy supply.

The war has driven the price ofBrent Crudeup from $72 per barrel (£58) to $118 per barrel (£96). Consequently, the ATF price (MOPAG and Premium) has surged from $87.24 (£70) to a high of $260.24 (£211) per barrel - a 295% increase - and is currently trading at $235.63 (£190) per barrel. This marks a significant rise compared to the pricing in March 2025, the FIA added.

The airline body said ATF pricing is usually around 30-40% of the airline's cost. However, with pricing rising due to the US-Iran war, the increase in ATF costs has now pushed airline operating costs to 55-60%.

Source: Daily Express :: World Feed