indian aviation market

Global oil prices are beyond India’s control but a tangle of govt interventions that have left Indian aviation structurally fragile. These demand correction.

State-run fuel retailers will not receive government financial backing for losses incurred from selling petrol, diesel, and aviation turbine fuel below cost. Despite rising crude oil prices, the government has opted to shield consumers by not revising retail prices for these fuels, focusing instead on price adjustments for bulk diesel and commercial LPG.

ATF or jet fuel, for international carriers became costlier on Friday, with prices rising by 5 per cent. This marks the second consecutive monthly increase as oil marketing companies continue to gradually pass on the impact of higher global energy prices.

Aviation Turbine Fuel standards have been updated to permit synthetic fuel blends, enhancing clarity amidst rising alternative fuel use. Meanwhile, Indian Oil assures no disruption in petrol and diesel supplies across northern regions, with robust stock levels. LPG demand has surged due to global conflicts, extending delivery times, though supply chains remain stable.

India and New Zealand have signed a 'once-in-a-generation' trade pact, granting Indian exporters duty-free access to New Zealand. The agreement aims to double bilateral trade to $5 billion in five years and includes a $20 billion investment commitment from New Zealand. Both nations are optimistic about the pact's potential to boost economic growth and cooperation across various sectors.

SpiceJet flights from Mumbai experienced significant disruptions, with multiple flights to Bangalore, Delhi, and Ahmedabad facing lengthy delays and cancellations. Passengers endured sleepless nights at the airport due to these issues. This follows a trend of poor on-time performance for SpiceJet, which recorded the lowest OTP among Indian carriers in March.

Kerala's upcoming election sees the LDF government banking on its development model and welfare gains for a third consecutive term, a feat rarely achieved due to anti-incumbency. Despite high SDG rankings, the state faces challenges in gender equality and economic growth, while migration and wage gaps emerge as key voter concerns.

Blockade of Hormuz hurts world’s poor most, because cost of living has shot up, and food security is at risk. UAE envoy to India argues for a resolution that ensures Hormuz is never weaponised again

India's state-run oil companies are incurring significant losses, estimated at Rs 18 per litre on petrol and Rs 35 on diesel, due to unchanged retail prices amidst volatile global crude oil prices. Despite a government excise duty cut, these firms continue to face mounting financial strain, with potential price hikes anticipated post-state elections.

Bahrain's airspace has reopened after a multi-day closure due to regional tensions, allowing Bahrain International Airport to resume operations. National carrier Gulf Air is gradually restoring flights to over 15 destinations, prioritizing high-demand routes. Passengers are advised to check flight statuses as operations are phased and schedules remain limited amid ongoing regional stability concerns.

Investors Richer By 16.3L Cr I Crude Falls 13% To $95.6/BBL

India faces significant external shocks from the Middle East crisis, impacting energy markets, trade, and supply chains. Disruptions in the Strait of Hormuz are increasing costs for exporters and importers, with sectors like agriculture and labour-intensive industries particularly vulnerable. Higher energy prices and potential slowdowns in Gulf economies could lead to sustained inflation and slower growth for India.

Dalal Street opened higher on Tuesday, with benchmark indices rising after a strong rebound in the previous session. Intense buying in banking and IT stocks, coupled with a strengthening rupee, boosted investor confidence. Global markets showed a mixed trend as oil prices climbed amid Middle East tensions.

Indian equity benchmarks, Sensex and Nifty, staged a strong intraday recovery to close higher on Tuesday. Easing crude oil prices, positive global cues, and robust buying in IT stocks fueled the rebound. Despite initial weakness, markets ended firmly in the green, with IT stocks leading the gains.

The government has limited the rise in jet fuel prices for domestic airlines to 25 percent. This decision aims to ease the financial burden on airlines and air travelers. International routes will face the full price increase. Meanwhile, non-scheduled operators are experiencing a more than double surge in jet fuel costs.

Things are getting worse at India’s oldest private airline. As its operational capacity has reduced significantly, people are being furloughed, salaries are delayed by up to two months or more and outstanding dues including GST, TDS and PF are piling up.

In FY26, India saw nearly 290 people die in air crashes. The financial year also witnessed muted passenger traffic growth and an unprecedented operational meltdown at India’s largest airline. How will the next fiscal pan out even as the West Asia conflict lingers spiking fuel prices?