AIRLINES BRACE FOR 15% PROFIT HIT AS FUEL COSTS BITE

The reality check for carriers comes from a Crisil Ratings report released this week, forecasting a 10-15% decline in the operating profit of domestic airlines to around ₹16,000-17,000 crore this fiscal year. The surge in global Aviation Turbine Fuel (ATF) prices—peaking at ~$145 per barrel—and airspace restrictions over West Asia are pushing the Cost per Available Seat Kilometre (CASK) to an estimated ₹4.8-5.0 per km .

While airlines have introduced fuel surcharges, the pass-through remains partial due to price-sensitive demand. For B2B corporate travel buyers, this signals that travel budgets will need to accommodate higher airfares throughout FY26 despite the recent easing in oil prices.