Airlines Send SOS To Govt As Fuel Costs Soar: What It Means For Airfares

Airlines in India are seeking urgent government relief as soaring aviation fuel costs and airspace restrictions linked to the West Asia conflict put pressure on their finances. The Federation of Indian Airlines, representing Air India, IndiGo and SpiceJet, has asked the government to extend relief measures announced in April. Airlines want a 25% cut in domestic landing and parking charges to continue, 7% VAT relief on ATF to be extended, and lower VAT in states with higher levies. They are also seeking a shift to cost-plus ATF pricing and a fixed-rate excise duty instead of the current 11% percentage-based levy. With fuel costs now accounting for 55–60% of airline operating costs, what could this mean for airline finances and passengers?