The Federation of Indian Airlines has written an urgent letter to the government, warning that Indian carriers are “on the verge of closing down”. The situation is grave, and the root cause is real. The industry wants temporary excise relief and a reinstated price cap, which would immediately lessen the pain but avoid a long-term solution.

Aviation turbine fuel accounts for 40 per cent of an Indian airline's operating costs. Following the current oil crisis, it has grown to 55-60 per cent of its total costs in April 2026. Brent crude is now $118 per barrel, up from $72 a barrel during the escalations of the West Asia confrontation.

Fuel costs squeeze airlines

The crack spread—the difference........

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