The Federation of Indian Airlines (FIA), which includes major carriers such as Air India, IndiGo, and SpiceJet, has issued a warning to the Indian government regarding potential flight cancellations due to escalating aviation turbine fuel (ATF) prices. In a letter dated April 26, the FIA stated that the airline industry is on the brink of ceasing operations unless urgent government intervention is made before the next ATF price revision on May 1. The FIA highlighted that the current pricing structure, which treats domestic and international ATF rates differently, creates a severe imbalance, rendering airline operations unsustainable.

On April 1, ATF prices for domestic airlines were raised by 114.55%, reaching ₹2,07,341 per kilolitre in Delhi, although government intervention later moderated this to ₹1,04,927 per kilolitre. The conflict in West Asia has driven Brent crude prices from $72 to $118 per barrel, leading to a staggering 295% increase in ATF prices. This rise has pushed fuel costs to constitute 55-60% of operational expenses, severely impacting profitability. The FIA has made three requests to the government: reinstating a transparent pricing mechanism, deferring excise duty on ATF, and reducing value-added tax in key states like Delhi and Tamil Nadu. Industry experts, however, view the FIA's letter as a pressure tactic rather than a genuine plea for help.