New Delhi: Indian airlines have raised serious concerns over the sharp increase in Aviation Turbine Fuel (ATF) prices, warning that continued escalation could force them to reduce or suspend flight operations.

The Federation of Indian Airlines (FIA), representing major carriers such as Air India, IndiGo, and SpiceJet, has written to the Ministry of Civil Aviation seeking urgent intervention.

According to the FIA, the price of ATF has increased significantly, with domestic fuel prices rising by ₹15 per litre and international fuel by ₹73 per litre in the past month. The cost of ATF has now crossed ₹2 lakh per kilolitre, largely due to geopolitical tensions in West Asia.

Fuel costs, which traditionally account for around 40% of airline operating expenses, have surged to nearly 55–60%, placing severe financial pressure on airlines—particularly on international routes.

The FIA warned that without immediate government action, airlines may be forced to curtail services or temporarily suspend operations on certain routes due to mounting losses.

The industry body has requested:

• Temporary removal of the 11% excise duty on ATF
• Reduction of state-level VAT, which ranges from 16% to 29%
• Implementation of a price stabilization mechanism similar to petrol and diesel
• Currently, Tamil Nadu levies the highest VAT on ATF at 29%, followed by Delhi at 25%, while cities like Mumbai, Bengaluru, Hyderabad, and Kolkata impose VAT between 16% and 20%.

The FIA also highlighted that Indian airlines face a competitive disadvantage globally due to high fuel taxation. Despite ATF accounting for only 4% of total refinery output, domestic airlines consume nearly 30% of production.

The aviation sector has urged the government to act swiftly to stabilize fuel prices and ensure the sustainability of airline operations in India.