Daijiworld Media Network - New Delhi

New Delhi, Mar 22: Union Civil Aviation Minister Ram Mohan Naidu on Saturday warned that airlines could face renewed financial pressure from April 1 due to a likely rise in Aviation Turbine Fuel (ATF) prices, with possible implications for ticket fares.
“ATF prices are revised on the first of every month, so the impact might be visible from April 1,” Naidu said, adding that the government has already initiated discussions with airlines to assess the situation.

ATF, a key refined petroleum product used to power aircraft, accounts for nearly 35 to 45 per cent of an airline’s operating costs. Any surge in global crude oil prices—often triggered by geopolitical tensions in oil-producing regions such as West Asia—directly pushes up ATF rates, squeezing airline margins and eventually impacting passengers.

Acknowledging the strain on the aviation sector, Naidu said the government is engaging closely with airlines as well as multiple ministries. “We are continuously in touch with airlines. Our first priority is to ensure safe operations, especially in the Middle East,” he said.

He noted that the issue requires a coordinated response. “This is a multi-departmental exercise involving civil aviation, external affairs, petroleum and natural gas. All ministries need to work together to address it,” he added.

Despite the anticipated pressure, the government signalled that protecting passengers from a sharp fare hike remains a priority. “In the interest of passengers, we will definitely try to see what best we can do,” Naidu said, while acknowledging that “the impact is definitely going to be there.”

Airlines are already grappling with increased operational costs due to longer flight routes and higher fuel consumption after avoiding high-risk airspaces. These factors, combined with rising ATF prices, are further tightening margins.

Major domestic carriers have begun passing on some of the burden through fuel surcharges. Air India and Air India Express have introduced a Rs 399 surcharge on domestic tickets, while international routes now attract levies ranging from around Rs 830 for West Asia flights to as high as Rs 16,600 for long-haul travel.

Similarly, IndiGo has implemented a fuel surcharge between Rs 425 and Rs 2,300 per sector, including Rs 425 on domestic routes. Budget carrier Akasa Air has also introduced surcharges ranging from Rs 199 to Rs 1,300 depending on flight duration.

The government said it is closely monitoring these developments to ensure that airfare remains within a reasonable range for travellers.