The aviation sector is under major pressure as global oil prices continue to rise. With crude oil crossing $111 per barrel, the situation is becoming critical for airlines. Indian Airlines are now facing serious financial stress due to rising fuel costs.
The Federation of Indian Airlines, which includes IndiGo, SpiceJet, and Air India, has warned that operations are becoming “completely unviable.” The group says urgent government support is needed to prevent further damage.
According to reports, Indian Airlines are struggling after aviation turbine fuel (ATF) prices increased by Rs73 per litre. This sharp rise has affected both domestic and international flights. Industry officials say losses have increased significantly in April 2026.
The crisis is linked to ongoing tensions in West Asia. Disruptions in the Strait of Hormuz have impacted global oil supply. As a result, crude oil prices surged sharply in international markets.
Brent crude jumped from $72 to $118 per barrel during the period of instability. This sudden increase has directly affected aviation fuel prices. Indian Airlines have seen fuel costs rise at an alarming rate.
Reports show that ATF prices reached as high as $260.24 per barrel before settling at $235.63. This still represents a massive increase compared to last year. Industry data shows a 295% rise compared to March 2025 levels.
Fuel costs have now become the biggest burden for airlines. Earlier, fuel accounted for 30–40% of operating expenses. Now, it has increased to nearly 55–60%, placing heavy pressure on Indian Airlines.
Adding to the crisis is the weakening Indian rupee. Currency depreciation has increased the cost of imported fuel. This has further reduced profit margins for airlines across the sector.
Industry experts warn that the combination of high fuel prices, currency pressure, and geopolitical instability has created a dangerous situation. Indian Airlines may face operational disruptions if conditions do not improve soon.
The Federation of Indian Airlines has urged immediate government intervention. Officials say without financial relief, the aviation sector could face serious operational challenges in the coming months.
Overall, the crisis highlights how global energy shocks are directly affecting Indian Airlines, pushing the industry into one of its most difficult periods in recent years.
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