World · India Bureau
High jet fuel costs squeeze Indian carriers, airlines seek govt relief
Rising aviation turbine fuel prices are forcing Indian airlines to reduce flight schedules despite fleet expansion, prompting industry appeals for government intervention through a price stabilization mechanism.
LSN India ·
Elevated jet fuel costs are increasingly constraining India's aviation sector, with carriers implementing service cuts even as they add aircraft to their fleets. The economic pressure reflects broader challenges facing regional and full-service carriers navigating volatile energy markets and operational pressures.
Star Air has trimmed its winter schedule by 16 flights compared to summer operations, exemplifying the difficult choices airlines face in balancing fleet growth with operational economics. Industry analysts note the apparent contradiction signals that fuel costs are outpacing revenue growth, forcing carriers to rationalize capacity.
Confronted with margin compression, India's aviation industry has renewed calls for government support. Airlines are specifically requesting the reinstatement of an Aviation Turbine Fuel (ATF) price stabilization fund—a mechanism designed to cushion operators against sudden fuel price spikes.
The stabilization fund, previously deployed during periods of acute fuel price volatility, would help insulate carriers from external shocks while they work to expand services and modernize fleets. Industry representatives argue the measure is essential for maintaining flight schedules and supporting India's broader aviation growth agenda.