India Airline Stocks Plummet as Brent Crude Hits $96

Airline stocks in India are under pressure as Brent crude prices near $96 per barrel. This sharp rise in global oil prices has raised concerns about supply disruptions, particularly near the Strait of Hormuz.

Domestic Aviation Turbine Fuel (ATF) prices were hiked by 5.46% to Rs 121.28 per litre, effective from September 1, 2026. This is a significant development for airlines, as fuel typically accounts for 35% to 40% of their total operating costs.

Airline operating margins are highly sensitive to fuel prices. When oil prices surge, carriers must decide whether to absorb the costs or pass them on to passengers through higher ticket fares.