India approved a $1 billion support package for airlines on Wednesday to cushion the impact of soaring aviation fuel costs triggered by the Iran war.
The conflict has engulfed the oil-rich Middle East and choked the Strait of Hormuz, through which one-fifth of the world's oil usually passes, sending aviation turbine fuel (ATF) prices soaring.
The crisis has sparked concerns over carrier profitability and led to a hike in fares.
The one-off payment would be provided as interest-free advances to state-run oil marketing companies to help steady ATF prices for carriers operating domestically and internationally, the government said.
"The measure will help protect and sustain domestic and international air connectivity, ensuring continuity of air services," it said in a statement.
