India's major airlines have warned of potential service suspensions if aviation turbine fuel (ATF) prices rise further, according to a letter from the Federation of Indian Airlines (FIA) cited by Bloomberg.

The industry body, representing carriers including Air India, IndiGo Airlines, and SpiceJet, said in the April 26, 2026, letter to the Civil Aviation Ministry that operators are "under extreme stress" and close to halting operations.

The FIA urged the government to reinstate pandemic-era caps on ATF prices and reduce or defer taxes. It warned that any "irrational increase in the price of ATF will result in unsurmountable losses for the airline and will lead to grounding of aircraft resulting in cancellation of flights."

The alert comes amid expectations that the government could raise fuel prices after state elections conclude on April 29, though officials have denied such plans. India earlier in April reversed a sharp increase in jet fuel prices for domestic flights within hours of implementation.

Fuel accounts for up to 40% of airline operating costs, leaving carriers exposed to price volatility. Airlines are also contending with a weakening rupee, which increases US dollar-denominated expenses, such as aircraft leases and overseas charges.

The government has introduced temporary relief measures, including a 25% cap on monthly ATF price increases and lower landing and parking fees at airports for three months, and is considering loans backed by sovereign guarantees.

According to the IATA jet fuel price monitor, the global average jet fuel price stood at USD1,417 per tonne for the week ending April 24, 2026, down 2.8% week-on-week but still significantly higher year-on-year.