India's leading airlines have welcomed the Centre's decision to introduce aviation turbine fuel (ATF) price stabilisation support, a move aimed at easing pressure on carriers facing sharply rising fuel costs linked to the ongoing West Asia conflict.
The government approved the support package on Wednesday, alongside a Rs 10,000 crore fund designed to cushion the aviation sector from unprecedented fuel price volatility.
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Government steps in as fuel prices surge
Announcing the measure, Union Minister Ashwini Vaishnaw said ATF prices had jumped nearly 2.5 times in just two months, rising from Rs 60.5 per litre in March 2026 to Rs 142 per litre in May 2026 due to the Middle East crisis.
To provide relief, the Centre has capped ATF prices for domestic airline operations at Rs 75.6 per litre. The decision is expected to significantly reduce operational pressure on airlines, for whom fuel typically accounts for around 40 per cent of total operating expenses.
The recent surge in prices has affected not only airlines but also oil marketing companies (OMCs), prompting calls for intervention from industry stakeholders.
Airlines welcome the move
Major carriers including Air India, IndiGo, SpiceJet and Akasa Air praised the government's decision, describing it as a timely and much-needed measure.
In a statement on X, Air India said, "Air India warmly welcomes and deeply appreciates the Government of India's decision to introduce Aviation Turbine Fuel (ATF) price stabilisation support. We are grateful to the Ministry of Civil Aviation, the Ministry of Petroleum and Natural Gas, and all concerned authorities for this timely intervention."
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The airline added, "This progressive measure provides much-needed support to the Indian aviation ecosystem and reinforces the Government's commitment to strengthening connectivity for the people of India, while enabling airlines to serve passengers more effectively."
Air India warmly welcomes and deeply appreciates the Government of Indias decision to introduce Aviation Turbine Fuel (ATF) price stabilisation support. We are grateful to the Ministry of Civil Aviation, the Ministry of Petroleum and Natural Gas, and all concerned authorities https://t.co/6pHFoC7D54
— Air India Newsroom (@AirIndia_News) June 3, 2026
Industry sees relief amid uncertainty
IndiGo also thanked the government for the support, calling it a reflection of the aviation sector's importance to economic growth and national connectivity.
We are grateful to the Government of India, Ministry of Civil Aviation, Ministry of Petroleum and Natural Gas and the concerned authorities for announcing Aviation Turbine Fuel (ATF) price stabilisation support to Scheduled Indian Airlines.
— IndiGo (@IndiGo6E) June 3, 2026
This timely intervention is a welcome https://t.co/PLoM1UejLY
SpiceJet described the fund as a source of greater stability during a period of elevated fuel costs and geopolitical uncertainty. The airline said, "This measure will help provide greater predictability and stability at a time when the aviation industry continues to grapple with geopolitical uncertainties and elevated fuel costs."
SpiceJet welcomes the Government of Indias decision to approve a Price Stabilization Fund for ATF pricing support during the current period of exceptional fuel price volatility.
— SpiceJet (@flyspicejet) June 4, 2026
This measure will help provide greater predictability and stability at a time when the aviation
Akasa Air echoed similar sentiments, saying the support would help maintain stable airline operations while contributing to connectivity, economic growth and nation building.
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The industry views the intervention as a significant step towards managing the impact of global fuel price volatility on India's aviation sector.
