India, June 4 -- The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a one-time 10,000 crore ATF Price Stabilisation Fund, marking one of the largest government interventions in the Indian aviation sector in recent years. The measure aims to cushion domestic airlines from the unprecedented surge in Aviation Turbine Fuel (ATF) prices triggered by the ongoing geopolitical tensions in West Asia.

The fuel shock has been severe. International ATF prices have climbed from approximately 60.50 per litre in March 2026 to 142 per litre in May 2026, representing a staggering 135% increase in less than two months. Since fuel typically accounts for 40-60% of an airline's operating expenses, the sudden spike posed a significant th...