Aviation Industry Faces Fuel Costs and Capacity Constraints Amid Strong Demand

Global aviation is navigating a volatile but growing market, as rising fuel costs, persistent capacity constraints, and shifting consumer behavior collide with strong demand. In India, airlines are under acute pressure from jet fuel prices. According to recent coverage, Brent crude has climbed more than 50 percent since the latest Middle East tensions began, and aviation turbine fuel now represents close to 40 percent of operating costs for Indian carriers. Major airlines including Air India, IndiGo, and SpiceJet have asked state run oil companies to delay further domestic jet fuel price hikes until regional conflict and US Iran tensions stabilize. Prices were briefly frozen in May, but the latest increases are squeezing margins and forcing higher fares, dampening discretionary demand and raising the risk of schedule cuts on thinner routes. In the United States, new research reported this week shows air travel reliability has deteriorated, with more delays and cancellations compa...