IndiGo, SpiceJet Shares in Focus as Indian Airlines Seek Government Help Over Rising ATF Prices, Risk Closure

As per The CNBCTV18 report, Indian airlines are sounding the alarm as inflated aviation turbine fuel (ATF) prices threaten operational sustainability.  

The Federation of Indian Airlines (FIA), representing major carriers like Air India, IndiGo and Spicejet, has reached out to the government for immediate relief measures. 

Impact of Rising ATF Prices on Airline Operations 

In a letter dated April 26, 2026, sent to the Ministry of Civil Aviation, the FIA highlighted the dire situation airlines are facing due to unsustainable ATF pricing.  

The industry's operating conditions have deteriorated, rendering domestic and international flights economically unviable. The dramatic rise in ATF costs is leading to substantial losses, especially for international operations. 

Fuel Costs Reach Critical Levels 

The airline sector is grappling with fuel expenses that now constitute 55-60% of total operational costs, up from a prior range of 30-40%.  

This surge is attributed to elevated refining margins and global crude oil dynamics, which have pushed the cost of ATF to unprecedented levels. 

FIA’s Call for Immediate Government Intervention 

The FIA has put forth several recommendations to alleviate the current crisis.  

Key measures include reinstating the earlier "crack band" pricing mechanism, temporarily suspending the 11% excise duty on ATF for domestic flights, and reducing the VAT in major aviation hubs.  

These actions are essential to ease the mounting cost pressures faced by airlines. 

Read More: Air India May Cut Flights By Up To 20% Amid Mounting Losses: Report! 

Risk of Flight Disruptions and Capacity Cuts 

Without swift government intervention, airlines may be forced to reduce capacity or ground aircraft, resulting in flight cancellations.  

The sector is not only struggling with fuel costs but is also contending with other challenges, such as airspace disruptions and currency depreciation. 

SpiceJet Share Price Performance  

As of April 28, 2026, at 12:23 PM, SpiceJet share price on BSE was trading at ₹14.35 down by 2.58% from the previous closing price. 

InterGlobe Aviation Share Price Performance  

As of April 28, 2026, at 12:24 PM, InterGlobe Aviation share price on NSE was trading at ₹4,483.90 down by 1.69% from the previous closing price. 

Conclusion 

The situation for Indian airlines remains precarious as rising ATF costs continue to strain operations. The sector awaits governmental measures to prevent potential disruptions and maintain stability in India’s aviation industry. 

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