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Federation of Indian Airlines flags crisis, links rising costs to West Asia conflict
April 28, 2026: The Federation of Indian Airlines has urged the Ministry of Civil Aviation to provide immediate support, warning that soaring Aviation Turbine Fuel (ATF) prices are putting severe pressure on the airline industry. In a letter to the Centre, the body stated that the financial strain has pushed several carriers to the brink of shutting down or suspending operations.
According to the FIA, the situation has worsened due to the ongoing conflict in West Asia, which has triggered a sharp rise in fuel costs. The organisation described the condition of the aviation sector as “dire,” highlighting that the steep increase in ATF prices has significantly impacted operational viability and profitability across airlines.
The industry body has called for urgent intervention from the government to stabilise the sector and prevent disruptions in air services. With fuel costs forming a major portion of airline expenses, stakeholders warn that without timely relief measures, the crisis could escalate further, affecting connectivity and the broader economy.