Federation of Indian Airlines warns ATF spike could ground flights
Indian airlines are sounding the alarm: if aviation turbine fuel (ATF) prices keep climbing, we could see flights grounded across the country.
The Federation of Indian Airlines (FIA) says carriers like IndiGo, Air India, and SpiceJet are struggling as fuel costs spike, thanks in part to global tensions pushing oil prices way up.
ATF now 55-60% of airline costs
ATF now eats up 55-60% of airline operating costs, jumping from $87.24 to $260.24 a barrel, with current trading above $235 a barrel.
On top of that, a weaker rupee and closed airspaces are making things even tougher.
The FIA is urging the government to step in, suggesting tax cuts and price controls, to help keep planes flying and avoid major disruptions for travelers.
Without quick action, expect fewer flights, more cancelations, and a hit to regional connectivity.