AIRLINE INDUSTRY CHALLENGES
Your next flight could cost more even if oil prices fall: Here's what is changing
Airlines face challenges that could prevent ticket price reductions despite falling oil prices and rising fuel costs. These challenges include aircraft maintenance expenses and delays in aircraft deliveries, which add to overall operational costs. Airlines are managing ticket prices carefully to balance their revenue recovery with passengers' price sensitivities. Consequently, travelers should remain aware of total travel costs, including various surcharges and fees.
Airlines' grouping AAPA calls for government support amid surging fuel prices, operational costs
The Association of Asia Pacific Airlines (AAPA) -- which represents 18 carriers, including Air India -- has also called for having government leadership during the sustainability transition amid challenges related to using Sustainable Aviation Fuel (SAF) for decarbonisation.
56% of airlines expect air travel slowdown over next 2-3 years amid rising costs: McKinsey
More than half of airlines expect a slowdown in air travel over the next two to three years, as rising jet fuel prices, higher maintenance costs and aircraft delivery delays weigh on the aviation industry, according to a McKinsey report. The report also highlights the sector's financial challenges, profitability trends and the potential role of artificial intelligence in improving operational efficiency.
Airlines facing challenging times; skies were a lot rosier a year ago: AAPA DG
High fuel prices, supply chain issues, and sustainability concerns are currently affecting the airline industry significantly. The Association of Asia Pacific Airlines highlighted that operational costs are increasing due to rising jet fuel prices. Governments are encouraged to engage in benchmarking to identify competitive strategies for their respective aviation markets. Sustainable Aviation Fuel production remains constrained, impacting airlines' decarbonization efforts.
Caught between costly inputs and cautious buyers, India Inc takes a hit
Companies in India's consumer goods, automobile, and paints sectors are increasing prices to offset rising costs. The West Asia conflict has severely impacted input and logistics expenses across various industries. While some companies have raised prices, they are still absorbing part of these costs to maintain demand. Consumer giants like Hindustan Unilever and Asian Paints report pressure on their margins despite price hikes.
Air India losses narrow, but Singapore Airlines’ profit falls 44% as fuel costs rise
In its latest financial report, Singapore Airlines announced a net profit of S$134 million for the first half, down from S$239 million in the same period last year. The airline faced a more than 20% rise in expenses, driven by higher jet fuel prices that reached US$171 per barrel, marking an 86.7% increase. Nevertheless, revenue saw a boost of 16.8% to S$11.
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How intelligent commerce is shaping the next frontier of merchant payments
For a decade, the task in India’s merchant payments was to get every shop and website to accept digital money. The value, leaders argued, at GFF 2026, is now moving to identity, risk, credit and growth, and to preparing the checkout for AI agents that may soon shop on consumers’ behalf.
Overall, India Inc credit profile looks healthy: Ramnath Krishnan, Icra Group CEO
Corporate India's credit profile has maintained strength following a period of deleveraging post-Covid, although external pressures exist. While rating upgrades continue to outnumber downgrades, specific sectors like chemicals and airlines face challenges. The potential for a drop in credit ratios exists, dependent on geopolitical factors and inflation rates. Companies remain hesitant to invest heavily amid uncertain consumer demand, leading to muted private sector capex.
Airlines go premium as demand for business-class seats outpaces economy
Since 2020, airlines have increased the number of premium seats significantly to meet growing consumer demand. Airlines are adopting strategies to enhance premium offerings, including gourmet meals and exclusive lounges. This focus has resulted in premium products generating substantial ticket revenue. Various airlines are implementing new options, such as Economy Plus and first-class services.
Iran war, doubling fuel prices knock 66% off Emirates' first-half profit
Emirates Group's first-half net profit plunged 66% to $1 billion as the Iran war disrupted flights across the Gulf and doubled jet fuel prices. Passenger numbers at Emirates airline fell 22%, while cargo revenue rose 52%. The Dubai-based group is relying on cash reserves as geopolitical uncertainty clouds its outlook.
Trump’s pain makes D-Street bulls gain! IndiGo, Asian Paints, other crude-sensitive stocks rally up to 8% as oil drops below $95
Paint makers, airlines, tyre companies and OMCs rallied as crude oil prices plunged nearly 10%, falling below $95 a barrel. Lower oil prices raised hopes of easing input and fuel costs, while Trump's midterm setback added to the positive market sentiment.
Navi Mumbai airport presents big opportunity for IndiGo, says CEO Willie Walsh
IndiGo sets its sights on enhancing its international long haul network by shifting some flights to Navi Mumbai airport. Willie Walsh, the airline's CEO, sees this as a pivotal move for future growth. Despite opposition from other foreign carriers, IndiGo is undeterred, viewing Navi Mumbai as an essential opportunity as Terminal 1 of Mumbai airport undergoes renovations next year.
IndiGo expects first Airbus A350 delivery in second quarter of 2028, CEO Willie Walsh says
The anticipated delivery of IndiGo's first Airbus A350 wide-body aircraft is scheduled for the second quarter of 2028, according to CEO Willie Walsh. The airline is focused on expanding its long-haul routes despite the hurdles of increasing fuel costs and a falling rupee. To better manage its operations, IndiGo has cut back on its Saudi Arabia routes.
Visa rules deter 43% of air travellers as immigration complexity becomes a barrier: IATA Global Passenger Survey 2026
International travel is facing challenges due to increasingly complex immigration requirements affecting passenger behaviour. The International Air Transport Association's survey reveals that many passengers are discouraged from travelling because of these complexities. Additionally, passengers show a preference for completing immigration procedures digitally before travelling to avoid delays. Concerns about personal data privacy persist despite the growing acceptance of digital travel solutions.
Airlines can't predict oil prices anymore. Travellers may be left footing the bill
Airlines globally face challenges in fuel cost hedging as prices remain elevated due to geopolitical tensions. Major airlines like AirAsia and Ryanair have halted new hedges, anticipating further fare increases. Higher fuel costs may push ticket prices up by 15% to 20%, straining consumer willingness to pay. Many US and European airlines have reduced hedging, exposing them to market fluctuations.
Expensive flights, struggling airlines: Why India's airfare crisis has no easy fix for passengers
India's proposed new airfare framework would require airlines to submit fare structures to the DGCA a month in advance, amid festive-season fare spikes of up to 68% on major domestic routes. Rising fuel costs, limited capacity and airline failures complicate efforts to protect passengers from steep price increases.
AI revenue should offset traditional services deflation: TCS CEO K Krithivasan
Due to the continuing pressure on companies amid geopolitical strife, TCS is assuming client budgets will not rise. It is, however, banking on customers spending on AI and modernisation. AI revenue - which crossed 10% of the total in the September quarter - should compensate for deflation in traditional services in the medium term, the CEO said.
Air India Express winter schedule brings 40+ new routes, more Gulf and Southeast Asia flights
Air India Express is really ramping up its winter schedule starting October 25. They're adding over 40 new routes for both domestic and international flights, which means Indian travelers will have a lot more options to fly to the Gulf, Southeast Asia, and various destinations all over the country.
Federation of Indian Airlines seeks Centre's intervention for faster release of ECLGS 5.0 funds
Indian airlines have requested the Civil Aviation Ministry's assistance in securing timely credit disbursements under ECLGS 5.0. The Federation of Indian Airlines aims to alleviate the severe financial strain caused by rising fuel costs and other factors. ECLGS 5.0 provides significant financial relief to eligible airlines impacted by current global disruptions. The scheme is designed to support airlines through short-term liquidity challenges during the ongoing crisis.
Nomura sees IndiGo emerging stronger from fuel shock; initiates Buy with Rs 6,000 target
Nomura initiated coverage on InterGlobe Aviation with a Buy rating and a Rs 6,000 target price, implying around 20% upside from the September 30 close. It believes IndiGo’s low-cost model, large aircraft order book and expanding international network could strengthen its competitive edge despite elevated fuel prices.
Rising oil prices, inflation to create headwinds for India's economic growth: BNP Paribas
BNP Paribas expects India’s economic outlook to come under greater pressure as higher crude prices, rising inflation and weaker rural and industrial indicators weigh on growth. While credit growth, auto sales and food-grain stocks remain supportive, the brokerage says elevated oil prices could also leave the RBI with less room to keep interest rates unchanged.
High airfares could stick around even if jet fuel prices fall
US airfares could remain elevated even if jet fuel prices fall, as airlines adjust schedules and ticket prices only gradually after sharp swings in fuel costs. With carriers cutting less-profitable flights and holiday fares already at decade highs, analysts say sustained relief for travellers may take months even if energy prices stabilise.
Indian executives are gaining clout in US corporate boardrooms
The landscape of S&P 500 boards has seen a noteworthy shift, with Indian men now occupying a record 16 seats. This development reflects the increasing preference for directors equipped with CEO-level expertise. In contrast, Indian women's representation on boards continues to stagnate. Compounding these dynamics, future entry for Indian executives into the US job market may face challenges due to prevailing immigration policies.
AI agents take over online shopping: Ecommerce firms rethink pricing, verification
India’s ecommerce and digital platforms are preparing for a surge in personal AI agents that could increasingly make shopping decisions and transactions for consumers, forcing companies to rethink pricing, customer engagement and bot verification.
Govt to weigh Adani airline plan cautiously over airport-airline conflict concerns
The government is carefully considering the Adani Group's request to start an airline, which could impact competition. There are concerns regarding the conflicts of interest due to cross ownership of airports and airlines. Existing airlines have opposed any relaxation of restrictions that could favor a single company like Adani. The Ude Desh ka Aam Nagrik scheme aims to boost regional connectivity by making air travel more accessible.
Estimating is not fudging: Decoding the needless jump from 'GDP is estimated' to 'GDP can't be trusted'
India poses an exceptionally difficult statistical challenge because hundreds of millions work on farms, tiny shops, construction sites and in household enterprises that do not produce audited quarterly accounts. So, a significant part of GDP calculations is based on projections and imputations.
India gives UDAN another decade to fly & generate Rs 60,000 crore; MoUs in 2-3 weeks
The Centre expects to finalize UDAN scheme agreements with all states soon. West Bengal will sign its memorandum of understanding on September twenty-eighth. The UDAN scheme has been extended for another decade, projecting significant economic impact. Faster airport construction is planned through a challenge model under the new framework. The government also monitors SpiceJet's operational and financial matters closely.
India’s no. 2 paintmaker Berger Paints plans expansion to fend off Birla, JSW
Berger Paints is strengthening its market position against new competitors. The company plans new luxury paint lines and expanding its exclusive outlets. It is also investing in new manufacturing facilities in eastern India. This strategy aims to counter pricing wars and secure market share. The Indian paint sector anticipates growth driven by urbanization and real estate.
AI rivals found rare agreement on safety. Putting it into practice is harder
But obstacles including domestic and global competition, profit motivations and pushback from President Donald Trump all stand in the way of a coordinated effort to pace AI's development.
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