Indian aviation sector faces significant pressure as crude oil prices remain elevated. According to Sparta Commodities Senior Oil Analyst Abhishek Kumar, airlines are increasingly vulnerable due to aviation turbine fuel representing a substantial portion of operating costs. With jet fuel prices rising faster than crude itself, the margin squeeze is becoming sharper. Airlines have already begun raising fares on select routes and reducing discounts, but cannot fully pass costs to consumers without dampening demand. The industry is now transitioning from absorption to adjustment phase, with capacity cuts and route reviews underway. If prices stay high, flight cancellations and government intervention may become necessary to maintain connectivity and prevent deeper sector stress.
