India’s aviation industry has moved from recovery to crisis. The Federation of Indian Airlines (FIA), which includes Air India, IndiGo, and SpiceJet, has sent an urgent SOS to the Ministry of Civil Aviation. It warns that the sector is close to collapse without immediate support.
Fuel costs are the main problem. Aviation turbine fuel (ATF) now makes up nearly 60% of operating expenses. Normally, fuel accounts for 35–40%. A ₹75 per litre hike, especially on international flights, has pushed costs to unsustainable levels. This rise is linked to Middle East tensions and supply chain issues.
When 60% of every rupee earned goes into fuel, only 40% remains for leases, salaries, maintenance, and airport charges. Airlines call this “extreme stress.” They say it could lead to grounded planes and shrinking networks.
To prevent shutdowns, the FIA has asked the government to suspend excise duty on ATF. Taxes, combined with state VAT, worsen the burden. Relief of ₹10–₹15 per litre could bring fuel costs below the 50% survival mark.
Without this step, airlines warn of “network cuts.” Smaller cities may lose flights, and international routes may shrink to only profitable hubs. The industry’s message is clear: government action is vital to protect jobs, maintain connectivity, and secure India’s aviation future.