Air India, IndiGo and SpiceJet have told the government that the country's airline industry is under extreme stress and on the verge of "stopping operations", as they sought revision in ATF pricing and financial support.
The government has suspended its directive requiring airlines to offer at least 60% of seats on flights without additional charges, following industry concerns about the impact on fares and pricing structures.
The support will be provided to oil-marketing companies (OMCs) in the form of interest-free advances through the ministry of petroleum and natural gas. The OMCs, in turn, will use the fund to provide ATF price stabilisation support to Indian carriers operating domestic and international flights.
Akasa Air, despite facing headwinds from the West Asia conflict and rising aviation turbine fuel prices, expects to maintain a 30-40 per cent growth trajectory over the next five years and aims for an initial public offering (IPO) within two to four years, according to CFO Ankur Goel.
Under the proposal, if a foreign carrier does not operate flights to a particular Indian airport for 'four consecutive IATA seasons', the regulator may suspend that airport authorisation.
'We may be able to wind back some of the schedule reductions we'd taken in recent months.'
Airline industry losses this year are expected to be nearly double the level forecast in December, as carriers are hit by steeply falling demand from premium passengers and by record falls in cargo traffic.
Adani Group and Brazilian aerospace firm Embraer have selected Dholera, Gujarat, as the location for a final assembly line for Embraer's regional jets. This strategic collaboration, formalised by an MoU in January, aims to boost India's Regional Transport Aircraft programme and align with the Aatmanirbhar Bharat initiative and UDAN scheme. Embraer sees immense potential in the Indian market across various aviation segments.
The airline industry is projected to register a net profit of $25.7 billion in 2024 as more normal growth is expected in both passenger and cargo segments, global grouping IATA said on Wednesday. For 2023, the net profit is estimated at $23.3 billion, significantly higher than the $9.8 billion projected by the International Air Transport Association (IATA) in June this year. IATA has more than 300 airlines as members.
The broader conflict in West Asia, the largest international market for Indian carriers, has forced a sharp reduction in daily flights relative to the summer schedule.
India has significantly reduced Aviation Turbine Fuel (ATF) prices for international airlines by 27% due to easing global fuel benchmarks, while simultaneously increasing commercial LPG and 5-kg cylinder prices to record highs.
IT services giant Wipro has launched an Applied AI Centre of Excellence (CoE) in Bengaluru, focusing on Anthropic's Claude models. This initiative aims to accelerate enterprise AI adoption, train 10,000 experts, and integrate AI into core business workflows and Wipro's internal operations.
Tata Sons Chairman N Chandrasekaran addressed Air India employees, acknowledging the airline's challenging phase while reaffirming the Tata Group's commitment to its long-term transformation, focusing on service quality, safety, and operational improvements.
India's aviation sector is facing fresh turbulence, with rising fuel costs, the Ministry of Civil Aviation's free-seat directive, and geopolitical disruptions in West Asia clouding near-term earnings visibility.
Aviation fuel prices for domestic airlines remain unchanged, providing stability for local carriers, while commercial LPG and 5-kg cylinders see a significant rate hike due to rising international energy costs.
IndiGo, India's largest airline, has announced the appointment of William Walsh, former British Airways chief and current Director General of IATA, as its new CEO, effective no later than August 3.
'A lot of people feel there is pressure on the AAIB not to go against Boeing or GE -- both enormous American companies.' 'If the AAIB implicates Boeing or GE, it will impact their sales.' 'If their sales are impacted, jobs are lost in the United States. No government would willingly do that.'
Noida International Airport has officially commenced flight operations with an IndiGo flight from Lucknow making the inaugural landing, followed by a takeoff to Lucknow, carrying 172 villagers whose land was acquired for the project.
A potential US-Iran peace deal, expected to be signed on June 19, is anticipated to ease geopolitical stress and benefit various sectors, particularly in India, with analysts suggesting investors await finer details before making significant moves.
Despite reporting a weaker-than-expected net loss of Rs 2,536 crore for Q4FY26, largely due to a significant non-cash forex loss, analysts remain optimistic about IndiGo's long-term prospects, citing strong demand trends, a favourable pricing outlook, and strategic cost-control measures.
CISF personnel apprehended a man from Chad at Mumbai airport for carrying USD 145,000 (worth Rs 1.39 crore) in his baggage. He was scheduled to fly to N'Djamena via Addis Ababa and has been handed over to Customs for further investigation.
High costs, visa hurdles, and logistics for the World Cup are deterring fans, leading to a disappointing boost for US hotels, airlines, and the travel industry.
Two new airlines -- Al Hind Air and FlyExpress -- are set to take to the skies, with the carriers receiving their no objection certificates from the civil aviation ministry.
Air India has deferred annual salary increments for its staff by at least one quarter and urged a "relentless focus on costs" due to external headwinds like the closure of Pakistan airspace, West Asia conflict, rupee depreciation, and a significant surge in aviation turbine fuel prices, though the airline has assured there will be no layoffs.
Fuelled by rising passenger traffic and reviving local economies, the global airline industry is projected to record a net profit of $9.8 billion this year, IATA Director General Willie Walsh said on Monday and also made a strong pitch for having global standards for a Sustainable Aviation Fuel (SAF) book and claim system to help reduce carbon emissions. While addressing the Annual General Meeting of the International Air Transport Association (IATA) here, Walsh also flagged concerns about supply chain issues that are raising costs as well as limiting the ability of airlines to deploy aircraft. He also pointed out that decarbonising aviation is a serious issue and governments must not be allowed to use it to shore up exchequer finances.
Airfares to Southeast Asia have surged 25 to 30 per cent, driven by high demand and limited airline seat capacity.
The forecast represents a 54 per cent fall compared to estimates put out by the trade body in March, and is 78 per cent lower than the $18-billion profit that the industry recorded in 2010.
The airline industry globally is expected to bounce back to its pre-recession traffic levels in two or three months, International Air Transport Association (IATA) has announced.
The US-China rapprochement, however tenuous, is not without implications for India. Both China and Pakistan have become closer to the US, notes Ambassador T P Sreenivasan.
India is closely monitoring Sri Lanka's decision to offer foreign investors control of an airport near the China-controlled Hambantota port, as it could present a rare opening for Indian firms seeking strategic footholds in the Indian Ocean.
A Fly91 flight from Hyderabad to Hubballi was diverted to Bengaluru due to adverse weather conditions, causing concern among passengers before safely returning to its destination.
Indian carriers have cancelled over 10,000 flights since the onset of the West Asia conflict, as escalating tensions and airspace restrictions disrupted international operations, a senior government official said.
Government sources indicate a potential increase in petrol and diesel prices due to rising global crude oil costs and losses incurred from a prolonged freeze on retail rates.
IndiGo has vacated over 700 slots at various domestic airports after the DGCA curtailed its winter flights by 10% following operational disruptions in December. Other airlines are invited to request these slots.
As temperatures soar, booking queries have surged by double digits -- going up to 125 per cent -- for destinations like Kashmir, Shillong, Gangtok, Munnar, Leh, Rishikesh, Guwahati, Imphal, Kodaikanal and the Andamans.
Iraq war to hurt Indian airline industry.With war clouds looming large over Iraq, the Indian airline industry is bracing itself against an increase in insurance premium and an additional burden of an estimated 25 per cent hike in ATF.
'IndiGo is fooling the country and the government has succumbed to it.'
Moody's Ratings has downgraded India's growth forecast for financial year 2026-27 (FY27) to 6 per cent from 6.8 per cent, attributing the revision to weaker consumption and industrial activity, elevated energy prices, and rising input costs stemming from the West Asia conflict.
Aviation Turbine Fuel (ATF) prices have more than doubled to a record high, impacting airlines and consumers, while commercial LPG rates also see a significant increase.
Indian airlines are now required to offer 60% of seats for free and ensure families sit together, as the government strengthens passenger rights and addresses concerns about high seat selection fees.
