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The letter highlights growing financial pain in the world\u2019s fastest-growing market where, even before the Iran crisis, airlines were hit hard by a Pakistani airspace ban for international operations due to diplomatic tensions.<\/p>\n
\nIn December, widespread aviation disruptions due to mass flight cancellations by IndiGo over operational issues prompted authorities to cap airfares depending on the distance, with the maximum being 18,000 rupees ($192.04) for a one-way journey.
The crisis has since eased, but caps remain in place without any timeline. Indian airlines are incurring \u201dhuge\u201d revenue losses and face higher operational costs in part because of a jump in jet fuel prices due to the Iran war, the Federation of Indian Airlines said in a private letter to the government on March 12, seen by Reuters.<\/p>\n
Current situation may threaten viability<\/strong><\/p>\n<\/div>\n \n<\/div>\n \n<\/div>\n \n<\/div>\n \n<\/div>\n \n<\/div>\n
\n\u201dIf the current situation continues, airlines will face severe financial losses, pushing several operators closer to unsustainable financial conditions and potentially threatening their continued viability,\u201d the March 12 letter, which was not made public, said.Also read: Air India to operate 50 flights on March 18 to West Asia amid regional conflict<\/a><\/strong><\/p>\n The civil aviation ministry and the FIA did not respond to requests for comment. IndiGo and Air India, which control more than 90% of India\u2019s domestic market, did not respond. A spokesperson for SpiceJet also did not respond to a request for comment.<\/p>\n A $1 per barrel change in fuel prices could impact IndiGo\u2019s full-year fuel bill by about 3 billion rupees, HSBC analysts have said. Jet fuel prices have risen sharply in recent days due to the Middle East war.<\/p>\n IndiGo and Air India are also flying longer routes to reach Europe and North America owing to airspace restrictions.<\/p>\n
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