Rising ATF, weak rupee, and excessive airport expenses threaten community viability
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AMIT DAVE
India-based airways have warned of fleet groundings, sharp cuts in flight operations and workforce downsizing as surging working costs threaten to render elements of their community “unviable”, in accordance with business sources who spoke to businessline.
These considerations had been conveyed to the federal government in a excessive degree assembly of the Federation of Indian Airlines (FIA) with senior officers of the Ministry of Civil Aviation (MoCA) earlier this week.
FIA represents main carriers together with Air India, IndiGo and SpiceJet. The assembly adopted a number of representations made by the FIA for the reason that battle within the Gulf broke out.
Operations to be lower
Accordingly, flight operations from March 29 could possibly be lower by 10–15 per cent on a year-on-year foundation, as properly as in comparison with the continued winter schedule, even as the height summer time journey season approaches.
On their half, airways conveyed to MoCA that except fast relief measures are applied, mounting value pressures — led by hovering aviation turbine gas (ATF) costs, excessive airport expenses for parking plane, and regulatory constraints on fares — are pushing the sector in the direction of a financially unsustainable place.
Besides, airways have sought pressing authorities help to make sure the “situation does not spiral”, warning that continued stress might set off job losses and erode connectivity.
Airfare caps
Speaking to businessline, a number of business sources stated that airways are pushing for the removing of airfare caps and a discount in airport expenses, whereas searching for relief from elevated ATF costs.
The warnings come amid disruptions linked to geopolitical tensions in West Asia, which have triggered volatility in world crude oil markets and pushed up gas costs.
businessline reached out to the Ministry of Civil Aviation, the FIA, and a number of airways for feedback; nevertheless, no responses had been obtained on the time of publication.
However, business sources indicated that discussions with the federal government are ongoing, with officers exploring attainable measures to help Indian carriers.
Notably, airspace closures on Gulf routes — which account for a big share of worldwide operations for Indian carriers — have remained in impact for practically a month, forcing the grounding of plane, that are incurring excessive parking expenses.
Rising jet gas costs
Apart from community disruptions, rising gas costs stay a key concern. Jet gas costs throughout metro cities rose by practically six per cent within the newest revision earlier this month.
Consequently, airways have imposed gas surcharges on each home and worldwide routes from March.
Nevertheless, a senior airline govt, chatting with businessline, stated the prevailing worldwide jet gas benchmarks, together with Platts Arab Gulf assessments, have greater than doubled for the reason that battle in West Asia started.
The govt added that ATF accounts for round 40 per cent of airline working costs.
At the identical time, the Centre’s imposition of short-term airfare caps in December has additional constrained airways’ capability to move on rising costs.
The Ministry of Civil Aviation has to date prolonged non-financial operational help somewhat than allowing significant value pass-through measures.
According to sources, airways warned that if these pressures persist, capability cuts could possibly be adopted by workforce reductions.
“The downsizing might start with non-operating staff, followed by other cadres in the airlines,” one other senior airline official stated. “Lease renewals might also get affected.”
Industry observers famous that whereas a calibrated discount in flights could assist keep operational reliability, it might come on the value of connectivity, notably to tier-II and tier-III cities.
Published on March 21, 2026