New Delhi, June 3: In a significant boost to India’s aviation sector, the Union Cabinet has approved a one-time financial support package of ₹10,000 crore for domestic airlines to help offset the impact of high Aviation Turbine Fuel (ATF) prices and strengthen the industry’s recovery and growth trajectory.
The decision comes at a time when airlines are navigating rising operational costs, expanding passenger demand, and increasing fleet investments. The support is expected to provide much-needed financial relief, improve liquidity, and enhance the sector’s ability to sustain affordable air connectivity across the country.
Government officials said the initiative reflects a commitment to supporting one of the country’s fastest-growing sectors, which plays a vital role in economic activity, tourism, trade, and regional connectivity.
Industry stakeholders have welcomed the move, noting that fuel expenses account for a substantial portion of airline operating costs. The assistance is expected to help carriers manage cost pressures while continuing investments in fleet modernization, network expansion, and service quality.
The aviation sector has witnessed robust passenger growth in recent years, driven by rising incomes, improved airport infrastructure, and the expansion of regional air connectivity under various government initiatives. The latest support package is expected to further strengthen the industry’s resilience and support long-term growth.
Analysts believe the measure could contribute to greater financial stability for airlines, support employment across the aviation value chain, and reinforce India’s ambition of becoming one of the world’s leading aviation markets.