Rising global oil prices amid the Iran war have impacted airfares, and multiple ministries are working together to ensure the consequences are minimal, Civil Aviation Minister Ram Mohan Naidu told India Today on Friday. In this regard, he said that the impact on the aviation sector is likely to be noticed in the Air Turbine Fuel (ATF) costs, which will be revised from April 1.
“ATF prices are decided on the first day of every month. So the impact might be visible from April 1,” the minister said, adding that the government is in constant engagement with airlines to assess the situation.
Highlighting the broader implications, Naidu said the conflict in the Middle East could have economic repercussions for airline operations. “The war might have an economic impact on airlines and their operations. We are taking feedback from them,” he further said.
The Minister emphasised that ensuring safe operations to Middle East destinations remains India’s priority, even as the government evaluates the evolving situation.
Describing the response as a coordinated effort, the minister said multiple ministries—including Civil Aviation, External Affairs, and Petroleum and Natural Gas—are working together. “It is a multi-departmental exercise, and several ministries will have to sit together,” he said.
Naidu added that the government aims to minimise the burden on passengers.
“In the interest of passengers, we will try to see what best can be done for airlines. We are working to ensure that the impact does not translate to passengers or disrupt operations,” he told India Today.
The ATF accounts for nearly 40 per cent of airlines’ operating costs, making it a critical factor in determining ticket prices. With crude oil and jet fuel prices already rising globally amid the Iran conflict, Indian carriers have begun imposing fuel surcharges on both domestic and international routes.
Recently, Air India, IndiGo and Akasa Air have all announced a fuel surcharge that passengers have to pay in addition to the base fare and ATF cost while buying a ticket.
The ATF is the actual price that airlines pay for the fuel. Owing to the Middle East conflict, global prices have shot up, thus making operational costs expensive for airlines. To manage these additional expenses, the airlines have incorporated a fuel surcharge. The ATF charges are decided by oil companies and airlines have no say in it, while the fuel surcharge is decided by airlines
