NewKerala.com

Aviation Sector Welcomes Partial ATF Price Hike, Expects Stable Airfares

The Indian aviation industry has welcomed the government's decision to implement only a partial, staggered increase in Aviation Turbine Fuel prices. Industry leaders from IndiGo and SpiceJet thanked the government, stating the move provides significant relief during global uncertainty. Civil Aviation Minister Ram Mohan Naidu Kinjarapu called the step pragmatic, as it eases pressure on both passengers and airlines. The calibrated 25% hike, effective against a backdrop of geopolitical tensions disrupting energy supplies, is expected to maintain airfare stability and support the broader economy.

Key Points: Partial ATF Hike to Keep Airfares Stable, Says Aviation Industry

  • Partial ATF hike shields passengers from sharp fare increases
  • Move provides relief to airlines amid global energy disruptions
  • Calibrated 25% rise vs. anticipated 100% global spike
  • Aims to maintain sector stability and affordable air travel
3 min read

Aviation industry welcomes partial ATF hike, says move will keep airfares stable amid global uncertainty

Aviation industry welcomes govt's partial ATF price increase, calling it a relief that will stabilize airfares amid global energy uncertainty.

"The Government's decision... comes as a significant relief for the Indian aviation industry at a time of unprecedented global uncertainty. - Ajay Singh"

New Delhi, April 1

Aviation companies have welcomed the government's decision to allow only a partial increase in Aviation Turbine Fuel prices, saying the move will help maintain stability in airfares and provide relief to both airlines and passengers amid rising global uncertainties.

In an official statement, IndiGo expressed gratitude to the government, stating, "We would like to thank the Hon'ble Prime Minister for such a significant step for all of us. We would also like to convey our heartfelt appreciation to the Ministry of Civil Aviation and the Ministry of Petroleum and Natural Gas as this marks a meaningful way forward, enabling greater stability for airlines and allowing us to pass on the benefits through more accessible and affordable travel for our customers."

Ajay Singh, Chairman and Managing Director of SpiceJet, also termed the decision a major relief for the aviation sector.

"The Government's decision to allow only a partial increase in Aviation Turbine Fuel prices comes as a significant relief for the Indian aviation industry at a time of unprecedented global uncertainty," he said.

He further thanked Civil Aviation Minister Ram Mohan Naidu Kinjarapu and officials for their intervention in ensuring a moderated price adjustment.

The Civil Aviation Minister also welcomed the move, calling it a timely step to ease pressure on passengers and the aviation industry.

In a social media post, the minister stated "With ATF prices in India--deregulated since 2001 and revised monthly based on international benchmarks, facing extraordinary pressure due to global energy disruptions and the closure of the Strait of Hormuz, a steep increase of over 100 per cent was anticipated from 1 April".

He further added "In this challenging context, the decision by PSU Oil Marketing Companies, under the Ministry of Petroleum in consultation with the Ministry of Civil Aviation, to implement only a partial and staggered increase of 25 per cent (Rs.15/litre) for domestic airlines is both pragmatic and forward-looking, while ensuring that foreign routes bear the full market-aligned price".

The calibrated increase is expected to shield passengers from sharp fare hikes, reduce cost pressures on airlines, and support overall sector stability. It is also seen as beneficial for the broader economy by ensuring smooth cargo movement and maintaining air connectivity.

As per the revised rates effective April 1, 2026, ATF prices have increased across major metro cities by about 25% against global price hike of 100%. In Delhi, prices rose to Rs 1,04,927 per kilolitre from Rs 96,638.14 in March. Kolkata saw prices increase to Rs 1,09,450 from Rs 99,587.14, while Mumbai recorded a rise to Rs 98,247 from Rs 90,451.87. In Chennai, ATF prices increased to Rs 1,09,873 from Rs 1,00,280.49 last month.

The latest revision comes amid escalating geopolitical tensions in West Asia involving the United States, Israel and Iran, which have disrupted global energy supply chains following the blockade of the Strait of Hormuz.

Industry players believe that the government's measured approach will help balance rising input costs while keeping air travel affordable for consumers.

- ANI

Share this article:

Reader Comments

R
Rohit P
Good decision. Stability in airfares is crucial for business travel and tourism. The last thing our economy needs right now is another shock. Kudos to the ministries for coordinating on this.
A
Aman W
While I appreciate the intent, I'm a bit skeptical. Airlines have a history of raising fares during peak seasons anyway. Will this "partial hike" really translate to stable fares for us, or is it just corporate relief? The proof will be in the pudding—or rather, in the ticket prices next month.
S
Sarah B
As someone who travels frequently between Delhi and Chennai for work, this news is a relief. The price difference mentioned is still significant, but much better than a 100% jump. Hope the geopolitical situation stabilizes soon.
V
Vikram M
Pragmatic policy making. In these uncertain times, protecting the common citizen from extreme price shocks is important. This helps both the industry and the passenger. Good step.
K
Kavya N
Finally some positive news! My family was planning a trip to Goa next month and we were worried fares would skyrocket. This gives us some confidence to go ahead with the booking. Thank you for the intervention.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50