Will airfares increase from April 1? Here's what's happening

Airfares could come under pressure again as Aviation Turbine Fuel (ATF) prices are set for revision on April 1, with early signals pointing to a likely increase. The Centre is now moving on multiple fronts to contain the impact on passengers while ensuring airlines are not pushed further under financial strain.

Sources told India Today that the Ministry of Civil Aviation (MoCA) is working on a three-pronged strategy to manage the fallout from rising global fuel costs. The effort comes as global ATF prices per barrel have doubled since February 28, sharply raising input costs for airlines.

At the policy level, Civil Aviation Minister Ram Mohan Naidu has urged states to bring down Value Added Tax (VAT) on ATF. Sources said the ministry is specifically appealing to states such as Delhi to consider reducing VAT, a key component that influences final fuel prices.

Simultaneously, discussions are underway with the Petroleum Ministry on ATF pricing. These deliberations are aimed at cushioning the impact of global price volatility on domestic aviation.

Officials said the government’s approach is focused on two parallel goals: limiting the pass-through of higher fuel costs to passengers and preventing financial stress for airline operators.

With ATF prices due for revision from April 1, the coming days are likely to determine how much of the global fuel surge translates into ticket prices.