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Aviation Turbine Fuel

New Delhi, India: InterGlobe Aviation, the parent company of India’s largest airline, IndiGo, reported a consolidated net loss of ₹2,536.9 crore for the quarter ended March 31, 2026 (Q4 FY26), reversing from a net profit of ₹3,067.5 crore recorded during the corresponding quarter of the previous financial year. The sharp decline in profitability came amid significant foreign exchange losses, elevated fuel prices, operational disruptions, and one-time charges that weighed heavily on the carrier’s financial performance despite a marginal increase in revenue. According to the airline’s financial results, revenue from operations rose 1.3% year-on-year to ₹22,438 crore in the January-March 2026 quarter, compared with ₹22,152 crore in Q4 FY25. However, the increase in revenue was insufficient to offset mounting cost pressures. A major factor behind the quarterly loss was a foreign exchange loss of approximately ₹4,823 crore, driven by the depreciation of the Indian rupee against the US dollar. The impact was particularly significant for IndiGo as a large portion of its expenses including aircraft leases, maintenance costs and other aviation-related payments are dollar-denominated. The airline also faced rising aviation turbine fuel (ATF) costs during the quarter amid geopolitical tensions and higher crude oil prices. Fuel remains one of the largest expense components for airlines and contributed substantially to the pressure on margins. In addition, IndiGo reported a one-time charge of ₹250 crore during the quarter. The airline also continued to face operational challenges, including disruptions linked to airspace restrictions and capacity-related constraints that affected network efficiency. Despite the reported loss, the company stated that its underlying business performance remained profitable. Excluding the impact of foreign exchange fluctuations and exceptional items, IndiGo posted a net profit of approximately ₹1,921 crore during the quarter. For the full financial year ended March 31, 2026, IndiGo reported a consolidated net loss of around ₹2,394 crore. The company’s annual results were affected by foreign exchange losses of nearly ₹8,100 crore, disruption-related costs estimated at about ₹580 crore, and expenses of roughly ₹1,200 crore associated with the implementation of new labour regulations. At the operational level, IndiGo carried approximately 123.4 million passengers during FY26, representing a 4% increase compared with the previous year. Total income for the fiscal year rose 6.4% to ₹89,513 crore, reflecting continued demand growth in India’s aviation sector despite a challenging operating environment. The airline’s board also approved the partial prepayment of finance lease obligations owed to its wholly-owned subsidiary, InterGlobe Aviation Financial Services IFSC Private Limited. The prepayment, to be executed in one or more tranches, may total up to US$450 million and is intended to support future aircraft and aviation asset acquisitions. Management indicated that IndiGo is evaluating fuel hedging strategies after remaining largely unhedged during a period of heightened volatility in crude oil prices. The airline said such measures could help reduce exposure to future fuel price fluctuations. Looking ahead, IndiGo expects capacity growth to moderate in the near term. The airline has guided for capacity expansion of approximately 3-4% in the first quarter of FY27, significantly lower than the 16.4% growth recorded during the corresponding period a year earlier. Following the earnings announcement, market participants indicated that IndiGo shares would remain in focus as investors assess the impact of currency movements, fuel costs, regulatory developments and operational performance on the airline’s future profitability.

IndiGo Posts ₹2,537Cr Quarter 4 Loss Amid Forex Hit, Higher Fuel Costs & Disruptions

Aviation Today News Desk / May 31, 2026

New Delhi, India: InterGlobe Aviation, the parent company of India’s largest airline, IndiGo, reported a consolidated net loss of ₹2,536.9 […]

New Delhi, India: India’s aviation sector has issued a fresh urgent appeal to the Centre seeking immediate intervention on aviation turbine fuel (ATF) pricing, just two days ahead of the scheduled fuel price revision, as escalating costs threaten the financial viability of airline operations. The representation has been made by the Federation of Indian Airlines (FIA), which represents major carriers including Air India, IndiGo and SpiceJet. In a formal communication to the Ministry of Civil Aviation, the body flagged that the industry is facing severe financial stress due to sustained increases in fuel costs. In one of the strongest warnings in recent years, the FIA stated that the airline industry in India is under extreme stress and is on the verge of closing down or stopping operations. In its April 26 letter, the industry body further cautioned that urgent intervention is required to continue airline operations. In its letter to MoCA, the FIA wrote: “In order to ensure uninterrupted operation of airlines within India, FIA earnestly requests the Ministry’s urgent intervention to review the ATF cost challenges in consultation with the relevant Ministries and stakeholders and also respectfully request the Government to extend the same fuel pricing mechanism uniformly across both domestic and international operations as was done in the past with the establishment of Crack (margin) Band. Applying the same framework consistently will ensure parity, reduce the financial burden and enable Indian airlines to compete more effectively with global counterparts.” The immediate trigger for the alarm is the sharp rise in ATF prices, which have now crossed ₹2 lakh per kilolitre in recent revisions, driven by global crude oil volatility linked to geopolitical tensions in West Asia. This marks a steep escalation from earlier in April, when ATF prices in Delhi rose 8.5% to ₹1,04,927 per kilolitre, up from ₹96,638.14. Airlines have also highlighted disparities between domestic and international fuel pricing, noting that while domestic ATF price increases were capped at ₹15 per litre, international operations faced a significantly higher increase of ₹73 per litre. The FIA has pointed to a dramatic shift in airline cost structures, noting that ATF, which earlier accounted for 30-40% of operating costs, has now surged to 55-60% of total expenses. This sharp increase has compressed margins, made several routes particularly international sectors financially unviable, and intensified cash flow pressures across airlines. Carriers have also stated that they are struggling to absorb rising costs, especially in markets where pricing flexibility remains limited due to intense competition. In its submission, the FIA has sought both immediate relief and long-term structural reforms. Among the immediate measures requested are the temporary removal of the 11% excise duty on ATF and a reduction in state-level value-added tax (VAT), which can go up to 25% in Delhi and as high as 29% in Tamil Nadu. The industry body has also called for the introduction of a transparent and predictable pricing mechanism, including the reinstatement of a “crack band” system with a refining margin range of USD 12–22 per barrel to stabilise fuel costs. Airlines have further mentioned a pricing mismatch in the ATF ecosystem, pointing out that fuel prices remain elevated even when global crude oil prices soften, due to high refining margins or “crack spreads.” This disconnect, they say, has made route planning, pricing strategies and capacity deployment increasingly challenging. The current surge in fuel prices is largely attributed to global developments, including geopolitical tensions in West Asia that have pushed crude oil prices higher and raised concerns over critical supply routes such as the Strait of Hormuz. Additionally, airspace restrictions linked to regional conflicts have increased operational costs, particularly for long-haul international flights. Airlines have warned that if fuel prices remain elevated, the industry may be forced to rationalise routes, reduce capacity and increase airfares. While carriers have so far absorbed part of the cost increase, industry executives indicate that this approach is not sustainable in the long term. As a result, passengers could soon face higher ticket prices, reduced flight frequencies and limited connectivity on marginal routes. The FIA has emphasised that the issue has now moved beyond rising costs to a broader concern over the viability of airline operations in India. With the next ATF price revision imminent, the industry’s latest appeal reflects mounting financial pressure and signals one of the most critical stress phases for Indian aviation since the pandemic, placing urgent focus on government intervention.

Air India, IndiGo And SpiceJet Issue ATF Price SOS To Govt, Warn Of Shutdown Risk

Aviation Today News Desk / April 29, 2026

New Delhi, India: India’s aviation sector has issued a fresh urgent appeal to the Centre seeking immediate intervention on aviation

Airlines Hike Ticket Prices Worldwide As Middle East Crisis Drives Global Fuel Surge SEO DES: Jet fuel prices jumped from $85–$90 to nearly $150–$200 per barrel, sharply raising airline operating costs, where fuel typically accounts for about 25–40% SOCIAL: Escalating tensions in the Middle East have triggered a sharp surge in aviation fuel prices, forcing airlines worldwide to raise ticket prices and introduce fuel surcharges. Jet fuel costs have climbed from about $85–$90 per barrel to nearly $150–$200, significantly increasing operating expenses, which typically account for 25–40% of airline costs. Carriers including Qantas, Air New Zealand, Scandinavian Airlines, Air India, Air India Express and Hong Kong Airlines have already raised fares or added surcharges, while others such as Thai Airways, Cathay Pacific, Finnair and Vietnam Airlines are adjusting routes and reviewing costs. Disruptions near the Strait of Hormuz through which 20–25% of global oil supply passes have pushed energy prices higher and forced airlines to reroute flights around restricted Middle Eastern airspace, increasing fuel burn and operational expenses across the global aviation industry. Global: Major global carriers are increasing ticket prices and imposing fuel surcharges as escalating conflict in the Middle East drives a sharp surge in aviation fuel costs and disrupts major air routes. The crisis has triggered one of the most significant cost shocks for the aviation sector since the pandemic recovery, forcing carriers across Asia, Europe, and Oceania to revise fares and operational strategies. Jet fuel prices have risen dramatically from around $85–$90 per barrel to between $150 and $200 per barrel in recent days, nearly doubling the cost of one of the airline industry’s largest expenses. Fuel typically accounts for 25–40% of airline operating costs, leaving carriers with little choice but to pass part of the increase on to passengers. The spike follows escalating military tensions involving Iran, the United States and Israel, which have disrupted global energy markets and aviation routes, particularly around the Gulf region. Several international carriers have already announced fare increases or fuel surcharges as they attempt to offset rising operating costs. Qantas: Australia’s Qantas Airways has raised fares on international routes after jet fuel costs surged. The airline said ticket prices will increase by about 5% on some routes, with variations depending on distance and demand. Its low-cost subsidiary Jetstar has also adjusted fares in response to the fuel spike. Air New Zealand: Air New Zealand has increased ticket prices and announced plans to cut around 5% of its flights to roughly 1,100 services through early May 2026, affecting about 44,000 passengers, as rising fuel costs and longer flight routes strain operations. Scandinavian Airlines (SAS): Scandinavian Airlines (SAS) confirmed it has increased fares across several routes due to the rapid rise in jet fuel prices, while also reviewing its financial outlook amid cost pressures. Air India and Air India Express: India’s Air India and Air India Express have introduced a fuel surcharge of ₹399 per domestic ticket starting March 12, with additional adjustments expected on international routes. The airline said the move is necessary after aviation turbine fuel prices surged due to geopolitical tensions in the Gulf region. Hong Kong Airlines: Hong Kong Airlines has raised fuel surcharges by up to 35.2%, with the steepest increases applied to long-haul flights, reflecting the rapid escalation in jet fuel prices. Other Airlines Affected Other carriers responding to the crisis include: Thai Airways – reviewing fares and operating costs. Cathay Pacific – rerouting flights to Europe via alternative corridors. Finnair – adjusting routes and warning of cost pressures. Vietnam Airlines – facing potential fuel shortages if disruptions continue. The fare increases are closely linked to disruptions in global oil supply caused by the conflict around the Strait of Hormuz, one of the world’s most critical energy shipping routes. Roughly 20–25% of global oil supply normally passes through the strait, and attacks on shipping and energy infrastructure have sharply reduced tanker traffic and pushed global energy prices higher. Brent crude oil prices briefly surged above $100 per barrel, while aviation fuel benchmarks climbed sharply, driving airline operating costs upward worldwide. In addition to higher fuel prices, airlines are also dealing with operational disruptions caused by restricted airspace across parts of the Middle East. Several countries in the region temporarily closed their airspace following the escalation of hostilities, forcing airlines to reroute flights on longer paths between Asia, Europe and the Middle East. Longer routes increase fuel burn and operational costs, further pushing airlines toward fare increases. Airlines serving major hubs such as Dubai and Doha have also faced congestion and holding patterns due to the rerouting of flights away from conflict zones.

Global Aviation

Airlines Hike Ticket Prices Worldwide As Middle East Crisis Drives Global Fuel Surge

Aviation Today News Desk / March 12, 2026

Global: Major global carriers are increasing ticket prices and imposing fuel surcharges as escalating conflict in the Middle East drives

Jaisalmer, December 21, 2024. The GST Council, led by Finance Minister Nirmala Sitharaman, has refused the airline industry's request to include aviation turbine fuel (ATF) in the GST system | Aviation Today

Setback for Airlines: GST Council Rejects Proposal to Include Aviation Fuel Under GST

Aviation Today News Desk / December 23, 2024

Image source: Wikipedia Jaisalmer, December 21, 2024: The GST Council on Saturday, led by Finance Minister Nirmala Sitharaman, has refused

New Delhi: Given the 1.45% increase in aviation turbine fuel (ATF) prices in December, air travel in India is predicted to become more costly. This is the second consecutive monthly price rise, coming after a 3.3% increase in November. Consequently, the increased gasoline prices indicated by oil corporations are anticipated to drive up the price of airline tickets.

Jet Fuel Prices Surge in December, Might Drive Up Air Travel Costs

Aviation Today News Desk / December 3, 2024

New Delhi: Given the 1.45% increase in aviation turbine fuel (ATF) prices in December, air travel in India is predicted

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