India approves $1bn fund for airlines as fuel costs surge
<p>New Delhi, India: India approved a $1billion support package for airlines on Wednesday to cushion the impact of soaring aviation fuel costs triggered by the Iran war.</p> <p>The conflict has engulfed the oil-rich Middle East and choked the Strait of Hormuz, through which one fifth of the world's oil usually passes, sending aviation turbine fuel (ATF) prices soaring.</p> <p>The crisis has sparked concerns over carrier profitability and led to a hike in fares.</p> <p>The one-off payment would be provided as interest-free advances to state-run oil marketing companies to help steady ATF prices for carriers operating domestically and internationally, the government said.</p> <p>"The measure will help protect and sustain domestic and international air connectivity, ensuring continuity of air services," it said in a statement.</p> <p>Government data shows ATF prices have more than doubled since March, rising from 60.50 rupees ($0.63) per litre to 142 rupees ($1.49) in May.</p> <p>Fuel accounts for around 40 percent of an airline's operating costs and spiraling costs pile pressure on margins.</p> <p>Oil minister Hardeep Puri said the fund would protect 7.7 million jobs dependent on the aviation ecosystem.</p> <p>It would also "safeguard substantial public investment in airport infrastructure by keeping airline operations viable," he said in a post on X.</p>
