Investing.com -- India's Union Cabinet approved budgetary support of up to Rs100 billion for Oil Marketing Companies to stabilize aviation turbine fuel prices for scheduled Indian airlines, according to Goldman Sachs. The support covers both domestic and international operations during the current period of fuel price volatility from the West Asia crisis.
Goldman Sachs analysts said the measure could provide airlines with 4-5 months of support based on spot prices, or 2-3 months using first quarter fiscal year 2027 averages. The firm noted the government will recover these costs from Oil Marketing Companies when oil prices decline, which may result in higher aviation turbine fuel prices in later quarters.
Goldman Sachs maintains a Buy rating on Interglobe Aviation. The firm has not changed its estimates due to lack of clarity on implementation details.