Parliamentary Panel Flags Rising Airfares, IndiGo, Air India Cite Higher Fuel Costs

A parliamentary panel on Monday raised concerns over rising airfares during a meeting with senior officials of IndiGo and Air India, who attributed the increase in operational costs to higher aviation fuel prices and the closure of Pakistan's airspace, according to a source.

The issue was discussed at a meeting of the Parliamentary Standing Committee on Public Undertakings, chaired by BJP MP Baijayant Panda.

Some committee members flagged concerns over the high cost of air travel while interacting with representatives of the two airlines. In response, the airline officials cited rising prices of Aviation Turbine Fuel (ATF) as a major factor driving up their operational expenses, the source said.

The meeting comes amid financial pressures on both airlines. IndiGo, the country's largest airline, reported a loss of Rs 1,879.1 crore in the September quarter, citing higher fuel costs and rupee depreciation.

Meanwhile, Air India's losses nearly doubled in 2025-26, adding to the challenges faced by the airline, which operates a significant number of international flights.

The continued closure of Pakistani airspace since early last year has also affected Air India's operations. Several flights have had to take longer routes, increasing flying hours, fuel consumption and overall operating costs.

Earlier in the day, the parliamentary panel held meetings with officials of the Bureau of Civil Aviation Security (BCAS) and the Aircraft Accident Investigation Bureau (AAIB).

Discussions with the directors general of the two agencies covered measures being taken to align India's aviation sector with global practices and strengthen aircraft security, the source said.