Air India has welcomed the Indian government's approval of a ₹10,000 crore Aviation Turbine Fuel (ATF) Price Stabilisation Fund, describing it as a 'much-needed support' for the country's aviation sector.
In a post on X, the airline extended its gratitude to the Ministry of Civil Aviation, the Ministry of Petroleum and Natural Gas, and all related authorities for the “timely intervention.” The post stated: “Air India warmly welcomes and deeply appreciates the Government of India’s decision to introduce Aviation Turbine Fuel (ATF) price stabilisation support. 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 announcement followed a statement by the Union Minister of Civil Aviation, who highlighted the impact of the West Asia crisis on global aviation fuel prices. He said, “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. 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.”
The Union Cabinet has capped the ATF price at Rs 75.60 per litre for domestic operations to stabilise the rising costs caused by the crisis. Union Minister Ashwini Vaishnav detailed the decision during a briefing, stating that the “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.”
The price of ATF surged from Rs 60.50 per litre in March 2026 to Rs 142 per litre in May 2026, nearly 2.5 times higher, due to the ongoing West Asia crisis. ATF is a substantial component of airline expenses, accounting for around 40% of operating costs and, during extreme price volatility, up to 60% of total operating expenditure, according to a release.