‘Grateful’: Air India Welcomes Government Move to Stabilise Soaring Aviation Fuel Prices

Air India welcomed the Centre's decision to introduce Aviation Turbine Fuel (ATF) Price Stabilisation Fund and hailed it as a "much-needed support" to the Indian aviation ecosystem.

In a post on X, the airline expressed gratitude towards the Ministry of Civil Aviation, the Ministry of Petroleum and Natural Gas and all other relevant authorities for the "timely intervention."

"Air India warmly welcomes and deeply appreciates the Government of India's decision to introduce Aviation Turbine Fuel (ATF) price stabilisation support,” the post read.

“We are grateful to the Ministry of Civil Aviation, the Ministry of Petroleum and Natural Gas, and all concerned authorities for this timely intervention. This progressive measure provides a 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," the post added.

The Airlines made the post in response to a post by the Union Minister of Civil Aviation, where he noted the impact of the West Asia crisis on aviation fuel prices globally.

What Is the ₹10,000 Crore ATF Price Stabilization Fund Announced by the Government?

"The ongoing West Asia crisis has led to a sharp rise in aviation fuel prices globally. To ensure that this does not translate into a sudden burden on Indian passengers, the Cabinet led by PM Shri @narendramodi Ji has approved a ₹10,000 crore Price Stabilization Fund for Indian airlines,” he wrote.

“This support will help keep airfares more predictable, maintain connectivity across the country, and enable airlines to continue operating smoothly during this period of global uncertainty," he added.

The Union Cabinet has capped the rate for Aviation Turbine Fuel at Rs 75.60 per litre for domestic operations in a bid to stabilize the surging prices of ATF due to the West Asia crisis.

The government announced a Rs 10,000 crore price stabilization fund to help the Oil Marketing Companies to subsidise ATF prices, Union Minister Ashwini Vaishnav said in a briefing on the cabinet decisions on Wednesday.

"Government has approved one-time budgetary support not exceeding Rs.10,000 crore for Oil Marketing Companies (OMCs) to provide ATF price stabilisation support to Scheduled Indian Airlines for their domestic and international operations," he said.

Due to the ongoing West Asia crisis, international ATF prices have surged nearly 2.5 times from Rs.60.50/ litre in March 2026 to Rs.142/litre in May 2026.

ATF accounts for nearly 40% of an airline's operating cost. Therefore, this volatility in ATF prices has resulted in high cost pressure on airline financials.

(With inputs from ANI)