In its communication to the government, the FIA stated that the industry is “on the verge of closing down or stopping operations,” as escalating fuel costs have made both domestic and international flights increasingly unviable. The situation has worsened significantly in April 2026, with airlines reporting substantial operational losses.
A key concern raised by the federation is the steep increase in ATF prices—reportedly up by ₹73 per litre for international operations. This surge has rendered international routes financially unsustainable while further straining domestic services. The FIA emphasized that current pricing mechanisms fail to maintain parity between domestic and international operations, deepening the industry’s challenges.
