Par panel raises concerns over high airfares; IndiGo, Air India flag rising fuel costs, Pak airspace closure

NEW DELHI: A parliamentary panel on Monday raised concern over the rising airfares during a meeting with senior officials of IndiGo and Air India, who told the members that surging jet fuel costs and Pakistan airspace closure were pushing their operational costs higher, according to a source.

The issues were discussed during a meeting of the Parliamentary Standing Committee on Public Undertakings, chaired by BJP member Baijayant Panda.

The panel members met the airlines' officials in the second half of Monday, after a meeting with the Bureau of Civil Aviation Security (BCAS) and the Aircraft Accident Investigation Bureau (AAIB) earlier in the day.

During the meeting with directors general of BCAS and AAIB, measures being taken to adopt global aviation practices in India and aircraft security were among the topics discussed, the source said.

During the meeting with the representatives of the two airlines, some panel members flagged concerns about the high airfares.

In response, the officials of IndiGo and Air India talked about the rising Aviation Turbine Fuel (ATF) prices impacting their operational costs, the source said.

IndiGo, the country's largest airline, recorded a loss of Rs 1,879.1 crore in the latest September quarter due to high fuel costs and rupee depreciation. Air India, which has significant international operations, also saw its losses nearly double in 2025-26.

Pakistan airspace closure since early last year has increased the flying hours for many flights operated by Air India, increasing the fuel burn and operating costs.