On April 1, 2026, India's aviation sector confronted a significant challenge as the price of Aviation Turbine Fuel (ATF) soared by over 114%, reaching Rs 2,07,341 per kilolitre. This unprecedented increase was driven by geopolitical tensions affecting global energy markets. To mitigate the impact on domestic passengers, the Indian government intervened, capping fare increases for domestic airlines at 25%, rather than allowing costs to double. This decision aimed to prevent a collapse in air travel accessibility, especially for the middle class, as fuel constitutes nearly 45% of airline operational costs. While domestic flights are shielded from full market prices, international carriers are still subject to the volatile global rates, which have crossed $1,600 per kilolitre. This intervention reflects a strategic approach to crisis management, allowing the government to maintain a deregulated market while providing necessary support during extraordinary circumstances. Airlines are now advocating for the inclusion of ATF under the Goods and Services Tax (GST) to potentially lower fuel costs in the future.