Inside India’s aviation crisis: Detours, duties, and deep losses | Energonomics Ep 16 | Richa Mishra

Surging fuel prices, disrupted flight routes, and rising operational costs have created what industry watchers call a “perfect storm” for aviation and tourism. In the aviation sector, fuel costs typically account for 40% of operating expenses. It has surged to nearly 55% of costs for some Indian carriers. The Indian government has significantly increased the export duty (often called a windfall tax) on Aviation Turbine Fuel (ATF) to ensure domestic availability during the ongoing West Asia conflict. In this episode of Energonomics, host Richa Mishra, Resident Editor, businessline speaks with Kirti Rao, Retd. Executive Director – Finance, Air India, and founding Chief Financial Officer – Air Kerala, to unpack fuel shortages, airline hedging strategies, route viability, and how carriers are coping without crushing passenger demand.