IndiGo CEO Willie Walsh has warned that jet fuel prices are likely to remain elevated in the near term, adding pressure on airline operations. He has also called for lower aviation taxes and airport charges in India to help airlines manage rising costs.

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Walsh said the current pressure on airlines is linked not only to crude oil prices but also to the widening gap between crude oil and jet fuel prices. Aviation turbine fuel (ATF) accounts for around 40% of IndiGo's operating costs, making changes in fuel prices particularly significant for the airline.

According to Walsh, crude oil was trading at approximately $110–111 per barrel, while the crack spread between crude oil and jet fuel had increased to nearly 65%. He compared this with a long-term average of around 22% between 2000 and 2025. Supply disruptions, including reduced refining output in Europe and difficulties in the Middle East, have contributed to the higher premium.

Walsh also identified airport charges and taxation as major concerns. He noted that airport charges increased 4% in the second quarter compared with the first quarter and argued that more competitive pricing could improve the operating environment for airlines.

Operational challenges are adding to the pressure. The continued closure of Pakistan's airspace has affected airline networks, while IndiGo has reduced services to Saudi Arabia, citing passenger and crew safety as a priority.

Despite these challenges, IndiGo is reviewing its network, managing costs and evaluating growth opportunities at Navi Mumbai airport. Walsh said the airline intends to retain its low-cost carrier model while pursuing long-term expansion.