Major Indian airlines warn fuel crisis could stop operations
India’s aviation sector could face major flight disruption after three major Indian airlines warned the government that rising fuel costs may force carriers to stop operating without urgent support.
According to foreign media reports, Air India, IndiGo, and SpiceJet submitted a letter to the Indian government calling for changes to the Aviation Turbine Fuel (ATF) pricing mechanism, as well as financial support to keep operations running.
The crisis has been driven by rising oil prices linked to tensions in the Middle East and growing airspace restrictions that have increased flight costs, especially on long-haul routes.
Jet fuel accounts for around 40% of total airline costs, leaving carriers under heavy financial pressure. The weakening rupee has added further strain by increasing operating expenses, reported TravelNews.
The Federation of Indian Airlines (FIA) said it had asked the government to expand the fuel pricing mechanism so it applies under the same standard for both domestic and international markets.
The FIA also called for a temporary suspension of the 11% excise tax on ATF. It warned that if fuel prices remain disconnected from actual costs, airlines may have to ground aircraft, cancel large numbers of flights, and cause wider disruption across India’s aviation system.
In a separate development, Lufthansa Group suspended more than 20,000 short-haul flights until October in response to rising fuel prices and the risk of fuel shortages in Europe linked to the ongoing conflict in the Middle East.
The short flight suspension affects services across six major European hubs, which are Frankfurt, Munich, Zurich, Vienna, Brussels and Rome, while long-haul operations continue as normal.
The airline group had begun suspending an initial 120 flights on April 20. That first phase is set to remain in place until May, with further suspensions scheduled to continue until October. The move is expected to save about 40,000 metric tonnes of fuel.
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