Three major Indian airlines—Air India, IndiGo, and SpiceJet—have warned the government that the country’s aviation industry is on the verge of shutting down. According to a Press Trust of India report, the carriers, which together control about 95 percent of India’s aviation market, said the situation has become critical due to soaring fuel prices and operational restrictions.

The report attributes the crisis to the Iran war and the near closure of the Strait of Hormuz, which have driven aviation fuel prices sharply higher in India, the world’s fifth-largest aviation market. Additional restrictions on airspace use have further increased operating costs, particularly for long-haul routes.

In response, the airlines have demanded a revision of aviation turbine fuel (ATF) prices. The Federation of Indian Airlines (FIA) has also urged the Civil Aviation Ministry to introduce a special mechanism to regulate fuel prices for both domestic and international flights.