The Government of India has approved the creation of a ₹10,000 crore Aviation Turbine Fuel (ATF) Price Stabilisation Fund to support Indian airlines. The fund is designed to cushion carriers against sharp fluctuations in global crude oil prices, ensuring more predictable operating costs and safeguarding passenger affordability.
Officials stated that the stabilisation mechanism will help airlines manage volatility in ATF prices, which account for nearly 40% of operational expenses. By reducing the impact of sudden spikes, the fund aims to strengthen the financial health of carriers and promote sustainable growth in the aviation sector.
The initiative comes at a time when airlines are expanding domestic and international routes to meet rising demand. The government emphasized that the fund will not only stabilize fares but also encourage investment in fleet expansion and infrastructure, supporting India’s vision of becoming a global aviation hub.
Industry experts welcomed the move, noting that predictable fuel costs will improve profitability, reduce fare shocks for passengers, and enhance competitiveness of Indian airlines in global markets.
