Centre Approves ₹10,000 Crore ATF Fund to Support Airlines

The Centre has approved a Rs 10,000 crore aviation fuel price stabilisation fund, Information and Broadcasting Minister Ashwini Vaishnaw announced on Wednesday.

Vaishnaw said the conflict in the Middle East has led to a sharp increase in aviation turbine fuel (ATF) prices, which rose 2.5 times from Rs 60.5 per litre in March 2026 to Rs 142 per litre in May 2026.

The government has capped ATF prices at Rs 75.6 per litre for domestic airline operations.

ATF accounts for around 40% of an airline's operating costs. The sharp rise in fuel prices has significantly affected both airlines and oil marketing companies.

Vaishnaw said the government's decision would provide substantial benefits to the aviation sector.

Fund Aims to Protect Airlines and Passengers

"The fund will help stabilise ATF prices for scheduled Indian carriers and will prevent disruption of airline operations. It will also shield air passengers from fare spikes driven by the global price surge," Vaishnaw said.

He added that the fund would help protect 77 lakh jobs linked to the aviation ecosystem and safeguard significant public investment in airport infrastructure by ensuring the viability of airline operations.

According to the minister, the measure will also help maintain regional and international connectivity to Europe, North America and Central Asia, particularly in light of the continued closure of Pakistani airspace.

This is the latest step by the government to provide support to the aviation sector amid the West Asia crisis. Earlier, the government had announced Rs 5,000 crore for the aviation sector under the Emergency Credit Line Guarantee Scheme.

Airlines can borrow up to 100 percent of their existing credit, with a cap of Rs 1,500 crore per borrower. The loans will come without any guarantee fee.