Indian airlines urge government to adopt 'Cost plus' ATF model
Indian airlines are asking the government to rethink how aviation turbine fuel (ATF) prices are set, since global events and currency swings have made flying a lot more expensive.
The Federation of Indian Airlines (FIA) wants a new "Cost Plus" model to help airlines manage these unpredictable costs and keep things sustainable.
Airlines hit by Brent crude spike
With airline operating costs now making up over half of expenses, thanks to Brent crude prices jumping from $72 to $118 per barrel, carriers like Air India, IndiGo, and SpiceJet are feeling the pinch.
The FIA warns that without changes, some flight routes might get cut, which could make affordable travel harder to find.
They're urging the government to lower VAT in key states and keep price caps on ATF so air travel stays accessible for everyone.