Indian budget carrier SpiceJet Ltd. is sounding alarms over crude oil prices that threaten the airline industry's recovery. Chairman Ajay Singh said even $90-a-barrel crude is unsustainable for carriers already struggling with high fuel costs. The warning comes as Indian airlines had been planning aggressive expansion to meet booming travel demand.

Fuel typically accounts for 30-40% of airline operating costs, making crude prices a critical factor in profitability. With global oil markets remaining volatile, carriers face a difficult choice between maintaining growth targets and protecting margins. Singh's comments suggest some airlines may need to scale back capacity additions or delay new aircraft deliveries.

The Indian aviation sector has been one of the fastest-growing globally, with domestic traffic surging post-pandemic. However, sustained high fuel costs could force carriers to raise fares, potentially dampening demand. Industry analysts say airlines must now balance expansion ambitions against the reality of elevated operating expenses.