Indian airlines battle revenue Loss, fuel cost surge amid West Asia war: Civil Aviation Ministry
&imwidth=600&imheight=450&format=webp&quality=medium "Indian airlines battle revenue Loss, fuel cost surge amid West Asia war: Civil Aviation Ministry")
Representative image. Photograph: (Boeing)
Civil Aviation Ministry Joint Secretary Asangba Chuba Ao noted that a key challenge is the rising cost of Aviation Turbine Fuel (ATF). Although prices have increased, the government has kept the hike moderate for domestic flights.
India's aviation sector has witnessed significant pressure, impacting airline revenues and increasing operational costs amid the ongoing West Asia war, Civil Aviation Ministry Joint Secretary Asangba Chuba Ao said on Tuesday (April 7, 2026). In an inter-ministerial briefing on recent developments in West Asia, Ao stated that airlines experincing a two-fold challenge due to the crisis, which started a month ago.
"50 per cent of all international operations by Indian carriers used to be to this region. International flights are a good source of revenue for airlines, so it has definitely impacted their revenue income, which affects their financials," he said, news agency ANI reported.
He further noted that a key challenge is the rising cost of Aviation Turbine Fuel (ATF). Although prices have increased, the government has kept the hike moderate for domestic flights. Airlines have adjusted by incorporating these costs into ticket pricing, with many introducing distance-based surcharges to manage higher operating expenses.
Capping the ATF price hike
"That is basically to cover the difference between operational cost due to increasing ATF pricing," he said. On April 1, the government moved to shield domestic aviation from a global fuel shock by capping the ATF price hike at 25 per cent, despite international benchmarks suggesting a potential spike of over 100 per cent.
The Ministry of Petroleum and Natural Gas stated that this step was taken due to an “extraordinary situation” in global energy markets following the closure of the Strait of Hormuz. To avoid a sharp rise in airfares, public sector oil companies, in coordination with the Ministry of Civil Aviation, implemented a partial and phased increase in fuel prices.
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During the briefing, Joint Secretary Asangba highlighted that passenger demand has remained resilient despite the challenges, particularly on domestic routes. He pointed out that daily travel recently exceeded 4,70,000 passengers, with more than 3,300 flights operating each day and consistently high load factors.
