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Indian airlines warn of operational shutdown over jet fuel costs.
28 Apr 2026
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Economy
Indian airlines warn of operational shutdown over jet fuel costs1234
The Federation of Indian Airlines, representing Air India, IndiGo and SpiceJet, wrote to the civil aviation ministry on 26 April warning the industry was on the verge of stopping operations because of soaring ATF prices amid the Hormuz crisis. Domestic hikes were capped while international fuel prices rose sharply.
- Federation of Indian Airlines letter to the civil aviation ministry dated 26 April 2026, reported 28-29 April
- Fuel normally 30-40 percent of operating costs, now 55-60 percent
- Asked for deferral of the 11 percent ATF excise duty, lower state VAT and parity between domestic and international pricing
- Domestic ATF price rise capped at Rs 15 per litre in March, while international routes saw about Rs 73 per litre
- Government reportedly offered relief including a 25 percent cap on monthly ATF hikes and lower airport charges for three months
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Economy
IndiGo flight cancellations trigger air travel crisis and fare caps567
IndiGo cancelled thousands of flights in early December as it struggled with new pilot duty and rest rules. The aviation ministry capped domestic fares on 6 December and the DGCA ordered IndiGo to trim its schedule by 5 percent on 9 December.
- Mass cancellations from early December 2025 (crisis ran roughly 2-9 December) after IndiGo failed to adjust to new pilot Flight Duty Time Limitation rules
- Civil aviation ministry capped fares on 6 December (Rs 7,500 up to 500 km, Rs 12,000 up to 1,000 km, Rs 15,000 up to 1,500 km, Rs 18,000 beyond)
- DGCA ordered IndiGo to cut its schedule by 5 percent on 9 December
- DGCA issued show-cause notice to CEO Pieter Elbers seeking explanation within 24 hours
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