Cabinet Approves ₹10,000 Crore ATF Price Stabilisation Fund for Aviation Sector

The Union Cabinet has approved a ₹10,000 crore Aviation Turbine Fuel (ATF) Price Stabilisation Fund to reduce the impact of sharp fluctuations in fuel prices on airlines and the aviation industry. The move comes after global fuel prices surged due to geopolitical tensions in West Asia, with ATF prices reportedly increasing from ₹60.5 per litre in March 2026 to ₹142 per litre by May 2026. Officials believe the fund will provide greater stability to airlines and help manage operational costs during periods of market volatility. ATF accounts for approximately 40% of an airline's operating costs in India, making this intervention significant for the sector's viability. This is part of a larger infrastructure approval package worth over ₹29,000 crore that includes highway projects in Bihar (₹3,936 crore), coastal highway in Odisha (₹8,301 crore), and road projects in Madhya Pradesh (₹4,415 crore). The fund aims to ensure air connectivity remains affordable during volatile global energy markets.