India approves 1.05 billion dollar airline fuel fund

India approved a 100 billion rupee ($1.05 billion) fuel stabilization fund on Wednesday to shield airlines from surging jet fuel costs. The emergency measure targets price volatility linked to the Iran war. For investors, the subsidy provides a critical buffer for airline margins as fuel can account for up to 40% of carrier operating expenses.

### Protecting Domestic Air Connectivity The government will provide the support through interest-free advances to oil marketing companies. These funds cover under-recoveries, representing the gap between market-linked jet fuel prices and the moderated rates charged to carriers. Government officials said the measure ensures the continuity of domestic and international air services.