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New Delhi, India: India approved a $1billion support package for airlines on Wednesday to cushion the impact of soaring aviation fuel costs triggered by the Iran war.
The conflict has engulfed the oil-rich Middle East and choked the Strait of Hormuz, through which one fifth of the world's oil usually passes, sending aviation turbine fuel (ATF) prices soaring.
The crisis has sparked concerns over carrier profitability and led to a hike in fares.
The one-off payment would be provided as interest-free advances to state-run oil marketing companies to help steady ATF prices for carriers operating domestically and internationally, the government said.
"The measure will help protect and sustain domestic and international air connectivity, ensuring continuity of air services," it said in a statement.
Government data shows ATF prices have more than doubled since March, rising from 60.50 rupees ($0.63) per litre to 142 rupees ($1.49) in May.
Fuel accounts for around 40 percent of an airline's operating costs and spiraling costs pile pressure on margins.
Oil minister Hardeep Puri said the fund would protect 7.7 million jobs dependent on the aviation ecosystem.
It would also "safeguard substantial public investment in airport infrastructure by keeping airline operations viable," he said in a post on X.
