BackBUSINESS
Jet fuel price for international airlines up 5.33%; domestic ATF unchanged as fares under pressure
International jet fuel prices were raised by 5.33% on May 1, 2026, the second hike since April 1. Domestic ATF prices remained unchanged after a government cap on the domestic increase, as airlines faced pressure from higher fuel costs and airspace disruptions.
Why It Matters
Higher international fuel costs and constrained domestic pricing could pressure airline margins and fares, against a backdrop of weaker demand and operational disruptions.
Timeline
4 Events
Jet fuel price for international carriers up 5.33% to $1,511.86 per KL in Delhi; domestic ATF unchanged; Air India raises airfares
May 1, 2026
State-run oil companies raised jet fuel prices for international airlines by 5.33% on Friday, the second hike since April 1, to $1,511.86 per KL in Delhi. There was no change in ATF prices for domestic airlines. Air India acknowledged it had raised airfares and imposed fuel surcharges to partially offset the surge in fuel costs.
FIA warns of flight cancellations over ad hoc ATF pricing
April 2026
Earlier this week, the Federation of Indian Airlines warned the civil aviation ministry of flight cancellations in a letter, saying airlines were on the verge of 'stopping operations' due to ad hoc ATF pricing.
April 1, 2026: Government caps domestic ATF increase at 25%
April 1, 2026
On April 1, the government said it had limited the domestic ATF increase to 25%, to ₹1,04,927 per KL, to shield passengers from a steeper fare shock.
DGCA March data shows passenger load factor dip
March 2026
Data from the Directorate General of Civil Aviation (DGCA) showed passenger load factors dipped 0.87% across airlines in March compared to February.