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High oil prices raise India aviation costs, IATA Director General Willie Walsh says
IATA Director General Willie Walsh said India, like other Asia Pacific markets, is facing pressure from high oil prices. IATA expects average jet fuel prices to be 70 percent higher year on year, adding USD 100 billion to airlines’ fuel bills in 2026. Walsh said concerns about jet fuel shortages have eased as refiners increased output.
High oil prices are weighing on India and the wider Asia Pacific aviation market, IATA Director General Willie Walsh said on Sunday. Walsh linked the pressure to Middle East disruptions that are lifting jet fuel prices. Walsh also confirmed plans to leave IATA soon, after IndiGo named Walsh as its next CEO.
IATA expects average jet fuel prices to be 70 per cent higher year-on-year. Walsh said that rise is set to raise airline fuel costs sharply. "That will add USD 100 billion to our collective fuel bill this year,\" Walsh said. Walsh spoke during a briefing that covered fuel markets and airline finances.
High oil prices and jet fuel costs: what IATA projected
IATA said fuel costs are set to rise nearly 40 per cent to USD 350 billion this year. The figure was USD 252 billion in 2025, IATA added. Airlines are managing part of the risk through hedging. Still, IATA cautioned that higher prices can hurt carriers across regions.
On fuel supply concerns, Walsh said refiners have increased jet fuel output. Walsh said that action has eased speculated shortages. IATA also flagged limits in hedging protection. Hedging can lower near-term swings. It cannot fully protect airlines from a long period of higher fuel prices.
High oil prices and hedging: IATA notes on airline exposure
IATA said airlines have hedged roughly one third of expected fuel consumption for 2026. IATA said many carriers hedge crude oil because it trades more easily. That strategy can leave airlines open to crack spread increases, IATA added. The crack spread is the gap between crude and refined products.
IATA projected that total fuel consumption in 2026 will match 2025 levels. The estimate stayed at 104 billion gallons for both years. Walsh also addressed the outlook for India when asked at the briefing. \"India, like all countries in the region, is impacted by the high oil prices.\"
High oil prices and India aviation: Walsh comments on market impact
Walsh said the oil shock is broad and not limited to one market. \"No part of the world is escaping the significant increase in oil prices.\" Walsh presented these comments while discussing the Indian aviation market’s prospects. IATA has tracked cost increases across regions as fuel remains a major expense.
At IATA’s Annual General Meeting, Walsh said the airline industry’s outlook remains positive. Walsh pointed to new tools that could improve operations. Walsh said AI could raise efficiency, lower costs, and support customer service. Walsh said future gains may help airlines manage pressures from fuel and other costs.
High oil prices and IndiGo leadership change: what was announced
Walsh also outlined an upcoming leadership move. \"In a few weeks, I will leave IATA and become the CEO of one of its members - IndiGo Airlines,\" Walsh said. On March 31, IndiGo announced Walsh as its next CEO. The airline made the change after Pieter Elbers exited suddenly.
IndiGo’s announcement came less than three weeks after Pieter Elbers left the role. The exit followed massive operational disruptions at IndiGo in December last year. Walsh’s move comes as airlines face higher fuel bills and supply risks. IATA said carriers are using hedging, but fuel exposure remains.
With inputs from PTI
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