Jet Fuel Prices Surge in April: Scheduled Airlines Get Relief, Private Charters Hit Hard
In a significant development for India's aviation sector, jet fuel prices have been revised upwards for April, with a stark contrast between scheduled carriers and non-scheduled operators. While scheduled airlines face a moderate increase, private charters are grappling with unprecedented hikes that could impact luxury travel.
Moderate Hike for Scheduled Airlines
Aviation turbine fuel (ATF) prices for scheduled Indian carriers have been increased by approximately 8.5% this month. In Delhi, the cost per kilolitre now stands at Rs 1,04,927, up from Rs 96,638.14 in March. At India's second busiest hub, the price has risen to Rs 98,247 from Rs 90,451.87. This adjustment is seen as a relief for the industry, as a steeper rise could have led to substantial airfare hikes for average travellers.
This moderate increase is crucial because jet fuel accounts for 40% to 45% of total operating costs for scheduled airlines in India, making it one of the most expensive globally. With only one profitable airline, IndiGo, and others like the Air India Group backed by cash-rich promoters, a larger hike might have rendered many carriers unviable.
Skyrocketing Costs for Non-Scheduled Flights
In contrast, non-scheduled, ad-hoc, and charter flights are experiencing dramatic price surges. For domestic flights, ATF prices have more than doubled, increasing by about 115%. At Delhi's Indira Gandhi International Airport, the cost per kilolitre has jumped to Rs 2,07,341.22 from Rs 96,638.14 last month—a 114.5% rise.
This marks the first time ATF prices have crossed the Rs 2-lakh mark in key cities like Delhi, Kolkata, and Chennai for these operators. For international chartered flights by Indian operators, the price has surpassed the $1,000 threshold for the first time in India, now costing $1,690.81 per kilolitre in Delhi, up 107% from $816.91. Similar hikes are observed in Mumbai, indicating a nationwide trend.
Impact on Airlines and Government Policies
Airlines such as IndiGo, Air India group, and Akasa had previously imposed or increased fuel surcharges, ranging from Rs 150 to $200, in response to cost pressures. The removal of the fare cap of Rs 18,000 for domestic flights on March 21, 2026, has added to the dynamic pricing environment.
Despite these adjustments, airlines have not received fiscal relief on ATF excise from the central government or VAT reductions from states like Delhi and Mumbai. They have explicitly requested that airfare caps only be implemented if their operational costs are similarly capped, highlighting the financial strain.
Additional Challenges for the Aviation Sector
The aviation industry faces further headwinds from the rupee's decline against the dollar, which increases dollar-denominated costs, including fuel for international flights. Additionally, routes to and from Western countries have become longer, compounding operational expenses.
This pricing shift underscores the bifurcated impact on India's aviation landscape, with scheduled airlines managing moderate increases while luxury and charter services confront steep cost escalations that may reshape travel patterns for the affluent.
