Air India, IndiGo, SpiceJet Warn of Shutdown Risk Amid Fuel Surge

Rising tensions in West Asia are sending shockwaves far beyond the battlefield—this time hitting the aviation industry where it hurts the most: fuel costs and flight operations.

Airlines are now facing a perfect storm of soaring expenses and restricted airspace, pushing the sector into a critical phase.

Air India, IndiGo, and SpiceJet have warned the government that the aviation sector is under “extreme stress,” with the risk of operations being severely disrupted.

Represented by the Federation of Indian Airlines, the carriers highlighted a sharp surge in Aviation Turbine Fuel (ATF) prices—now accounting for nearly 40% of operational costs.

The crisis has been intensified by rising global oil prices and airspace restrictions linked to regional conflicts, making both domestic and international routes increasingly unviable. Airlines report significant financial losses, especially on long-haul routes, as fuel costs spike and operational efficiency drops.

In a letter to the civil aviation ministry, the FIA has urged immediate government intervention, warning that the current situation could destabilize airline networks and make operations unsustainable if relief measures are not introduced soon.