Major Indian airlines have issued a collective warning that the industry is on the verge of a near-total shutdown unless the government provides immediate relief from high fuel taxes. The carriers argue that the current tax structure on Aviation Turbine Fuel (ATF), combined with rising global oil prices due to the Middle East conflict, has made operations financially unsustainable. 

The Airlines Federation of India emphasized that without a significant reduction in central and state-level levies, several domestic carriers may be forced to suspend flights or declare bankruptcy within weeks. This crisis threatens to disrupt travel for millions and could have a cascading effect on the nation's broader economy and tourism sector. 

Government officials are reportedly in talks with industry stakeholders to explore a potential rescue package or tax holiday. However, any delays in policy intervention could lead to a significant reduction in air connectivity across South Asia, further complicating regional trade and travel at a time of heightened global uncertainty.