Indian airlines will be eligible for up to INR50 billion rupee (USD528.9 million) in emergency credit support approved by the Indian government. This marks an increase over the previously reported INR40 billion (USD423.1 million) plan to help carriers manage financial stress caused by the Middle East conflict.

The Ministry of Civil Aviation said in a statement on May 6, 2026, that the Union Cabinet had approved Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 after airlines faced higher jet fuel prices, airspace closures, reduced operations on international routes, lower aircraft utilisation, and liquidity pressure.

The scheme provides 90% credit guarantee cover for airline loans, with support capped at INR15 billion (USD158.7 million) per borrower. This comprises a maximum loan limit of INR10 billion (USD105.8 million), plus an additional INR5 billion (USD52.9 million) subject to an equivalent equity infusion.

The loans will have a tenure of up to seven years, including a two-year repayment moratorium. Eligible scheduled passenger airlines must have had outstanding credit facilities as of March 31, 2026, with standard accounts, and loans must be sanctioned by March 31, 2027.

Civil aviation minister Ram Mohan Naidu said: "By approving the ECLGS 5.0, airlines will be enabled to navigate short-term liquidity challenges and maintain seamless operations amid global disruptions."

Air India has since reduced international flights through July 2026, citing higher jet fuel prices, airspace closures, and longer routings that made many international services unprofitable, while the Federation of Indian Airlines warned the government that the sector was under "extreme stress" and sought intervention on aviation turbine fuel costs.