Indian airline shares plunged in the day’s most turbulent session as ATF prices crossed Rs 2 lakh per kilolitre. IndiGo slipped 2.79% to Rs 4,434 and SpiceJet fell 2.58% to Rs 14.35. With ATF costs up 115% since April, investors fear widening losses and pressure on quarterly earnings across the sector.
With the Iran crisis dragging on and no peace deal in sight, India’s aviation industry has warned the central government it may be forced to stop operations. The Federation of Indian Airlines says any further pricing distortions or sharp increases in ATF could push carriers into insurmountable losses, leading to aircraft grounding and flight cancellations.
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Air India, IndiGo, and SpiceJet say they are facing severe financial strain and warn they may have to stop operations. Soaring aviation turbine fuel prices, airspace restrictions, and cash pressure have pushed them to seek government support, including a revised ATF pricing mechanism and temporary deferment of excise duty on ATF to stabilize costs.
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