New Delhi
The ongoing West Asia conflict has placed significant pressure on India’s aviation sector, affecting airline revenues and increasing operational costs, according to Asangba Chuba Ao.
Speaking at an inter-ministerial briefing, Ao explained that Indian carriers are facing a dual challenge as the crisis continues to disrupt normal operations.
Firstly, a substantial portion of international traffic has been impacted. Nearly half of Indian airlines’ overseas operations were linked to the West Asia region, making it a key revenue source. The disruption has therefore had a direct effect on airline earnings and financial stability.
Secondly, airlines are grappling with rising fuel costs. Aviation Turbine Fuel (ATF), which accounts for a significant share of operational expenses, has seen price increases amid global energy volatility. To manage this, airlines have introduced distance-based surcharges to offset higher costs.
In response, the Ministry of Civil Aviation, along with the Ministry of Petroleum and Natural Gas, has taken steps to cushion the impact. The government recently capped the increase in ATF prices for domestic carriers at 25 per cent, despite international benchmarks indicating a much steeper rise.
Officials said this intervention was necessary due to extraordinary conditions in global energy markets, particularly following disruptions linked to the Strait of Hormuz.
Despite these challenges, domestic passenger demand remains strong. Recent data shows daily air traffic exceeding 4.7 lakh passengers, with more than 3,300 flights operating and high occupancy levels.
The conflict has also led to airspace restrictions across several countries, including Israel, Jordan, Lebanon, Kuwait, Qatar, Bahrain, and the United Arab Emirates. As a result, Indian airlines operating to Europe and North America are being forced to take longer routes, leading to increased travel time and additional costs.
To ease operational pressures, the Directorate General of Civil Aviation (DGCA) has temporarily relaxed Flight Time Limitation norms for pilots on long-haul routes, helping airlines manage crew availability.
Additionally, foreign carriers such as Emirates, Kuwait Airways, and Jazeera Airways have been permitted to operate passenger aircraft for cargo services to ensure continuity in supply chains.
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The government emphasised that it remains focused on maintaining passenger safety, stabilising the aviation sector, and ensuring uninterrupted cargo movement while closely monitoring the evolving situation.