Indian airline group warns of route withdrawals amid oil price shock

Saturday, 21 March 2026 00:00 - - {{hitsCtrl.values.hits}}

An Indian airline group representing IndiGo, Air India and SpiceJet warns the Indian Government of route withdrawals and fleet delays as fuel prices rise.

In a letter, the Federation of Indian Airlines asked the Modi administration to drop the fare caps earlier imposed in December.

Reuters reported that Indian airlines are incurring “huge” revenue losses and facing higher operational costs.

“If the current situation continues, airlines will face ‌severe financial losses, pushing several operators closer to unsustainable financial conditions and potentially threatening their continued viability,” the letter, seen by Reuters, noted.

HSBC analysts have estimated that a $ 1 per barrel change in fuel prices could increase IndiGo’s full-year fuel bill by about INR 3 billion ($ 32m).