New Delhi: Indian airlines have flagged a severe financial strain caused by rising aviation turbine fuel (ATF) prices, warning the Union government that flight services could be affected if the trend continues.
In a letter to the Ministry of Civil Aviation, the Federation of Indian Airlines—representing carriers including Air India, IndiGo and SpiceJet—said the current fuel prices have made several routes financially unviable.
The group cautioned that if the price increase persists, airlines may be compelled to review their operations. It noted that on routes where fares cannot be easily adjusted, absorbing higher fuel costs has become increasingly difficult.
According to the letter, the sustained rise in fuel expenses is putting pressure on cash flows and deepening the financial crunch. The airlines have sought temporary removal of the 11% excise duty on ATF and called for steps to reduce state-level VAT on the fuel.
