Union Civil Aviation Minister Ram Mohan Naidu has warned that airlines may face a fresh cost squeeze starting April 1 due to rising Aviation Turbine Fuel (ATF) prices.
Naidu said, “ATF prices are decided on the first of every month. So, the impact might be visible from April 1”, adding that discussions with airlines are already underway.
ATF is the refined petroleum product used to power aircraft and typically accounts for 35 to 45 per cent of an airline’s operating costs. Any spike in global crude prices, often triggered by geopolitical instability in oil-producing regions like West Asia, directly raises ATF rates, putting pressure on airline finances and, eventually, ticket prices.
Acknowledging the economic strain on carriers, Naidu said the government is in active consultation with airlines and multiple ministries to assess the situation. “We are continuously engaging with the airlines. The first and foremost is that we want to have safe operations, especially in the Middle East,” he said.
He added that the issue goes beyond aviation alone. “It is a multi-departmental exercise, civil aviation, external affairs, petroleum, and natural gas. All the ministries have to sit together and address this,” he noted.
Despite this, the government has indicated that shielding passengers from immediate fare shocks remains a priority. “In the interest of passengers, we will definitely try to see what best we can do,” Naidu said, while stating that “the impact is definitely going to be there.”
While acknowledging that an impact is inevitable, he stressed that the ministry is focused on preventing the burden from translating into operational disruptions.
Airlines are already dealing with longer flight routes and higher fuel consumption after being advised to avoid certain high-risk airspaces. These operational adjustments, combined with the expected rise in ATF prices, are putting additional pressure on airline margins.
Major domestic carriers have already begun introducing fuel surcharges to manage the rising costs of fuel. Air India and Air India Express have added a Rs 399 surcharge on domestic tickets. For international routes, these levies range from approximately Rs 830 for West Asia to as high as Rs 16,600 for long-haul destinations.
IndiGo has implemented a fuel surcharge ranging from Rs 425 to Rs 2,300 per sector, depending on the distance, which includes a Rs 425 levy on domestic routes. Similarly, budget carrier Akasa Air has introduced a surcharge between Rs 199 and Rs 1,300 per sector based on flight duration. The government continues to monitor these adjustments to ensure that ticket costs remain manageable for travellers.
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