Naidu says airlines may be asked to revisit surge pricing if ATF stabilises

The Union government may ask airlines to review surge charges and additional fares if aviation turbine fuel (ATF) prices remain stable over an extended period, Civil Aviation Minister K Ram Mohan Naidu said on Thursday.

Speaking to reporters in Varanasi, the minister said the government was closely tracking recent movements in fuel prices and holding discussions with airlines to determine whether the decline in ATF costs represented a lasting trend before considering any fare-related changes.

According to ANI, the Centre believes any decision on airline pricing should be based on sustained fuel price stability rather than short-term fluctuations.

Government monitoring fuel price trends

Naidu said the government was assessing whether the recent moderation in ATF prices would continue over the longer term.

"Now that we are seeing prices coming down, we still have to see if this is a long-term reduction or if it is sudden, and we are talking to the airlines on this," he said.

The minister noted that the aviation sector had experienced a challenging period over the past four months, making it important to evaluate fuel price movements before engaging airlines on fare revisions.

He said discussions on reducing surge charges or other additional fares would take place only after there was greater confidence in long-term price stability.

Possible review of airline surcharges

According to Naidu, the government intends to work with airlines if fuel costs remain predictable over time.

"The last four months have been very important for the airlines. Once we are clear that price stability will continue for a long time, we will talk to them and work towards reducing the surge charges or the extra prices we are seeing right now," he told ANI.

His remarks indicate that any changes to airline pricing would be considered through consultations with carriers rather than through an immediate regulatory intervention.

Support measures remain in place

The minister also highlighted several steps taken by the government to help airlines manage operating costs during recent geopolitical disruptions.

According to ANI, these measures include:

• A ₹10,000 crore price stabilisation fund for the aviation sector
• Capping ATF prices for domestic scheduled operators
• Reduction in airport charges
• Support through the Emergency Credit Linkage scheme

Naidu said the creation of the stabilisation fund reflected the importance the government attached to maintaining stability in the aviation sector.

"In the case of ATF, we have also provided a price stabilisation fund of ₹10,000 crore. You can see how important the Indian government is considering this issue right now," he said.

Fuel costs remain central to airline economics

ATF remains one of the largest operating expenses for airlines, with price movements directly influencing airline profitability and fare structures.

According to the minister, ATF prices are currently reviewed every fortnight by the government based on movements in global crude oil prices.

The latest discussions come as airlines continue to navigate cost pressures linked to geopolitical developments in West Asia, even as fuel prices have shown signs of easing.

The government's assessment will determine whether the recent decline represents a temporary correction or a sustained trend that could support lower passenger fares.