CORSIA and beyond: Indian airlines embrace greener future

As global pressure mounts to decarbonize the skies, Indian airlines are preparing to navigate a new era of aviation, one that prioritizes sustainability without compromising growth. With commercial aviation responsible for roughly 2–3% of global CO₂ emissions, India's aviation sector is stepping up with a two-pronged strategy: fleet modernization and alignment with international carbon regulations like CORSIA.

India’s Young Fleet and Emission Targets

India boasts one of the youngest aircraft fleets globally. Nearly 59% of commercial aircraft in operation today belong to the latest generation of narrowbody and regional jets. This number is expected to rise to an impressive 95% by 2041. Airlines like IndiGo, Akasa Air, Air India Express, and SpiceJet are investing heavily in fuel-efficient aircraft such as the Airbus A320neo and Boeing 737 MAX to reduce fuel burn and emissions per seat.

Fleet renewal, however, is just the beginning. The real test will be compliance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which India is set to formally join in 2027. CORSIA requires airlines to purchase offsets for emissions above 2020 levels on international routes, effectively placing a price on carbon-heavy operations.

CORSIA: Climate Compliance with Economic Consequences

While CORSIA is a global step toward aviation decarbonization, its rollout raises tough questions: Who will pay for greener flying? And how will Indian carriers remain cost-competitive while absorbing higher operational costs? Answering such tough questions on carbon emissions airline leaders pooled together their thoughts at recently held India Travel & Tourism Sustainability Conclave 2025. Speaking on Air India Express’ objectives Aloke Singh, managing director, Air India Express said: “We have started a green flight program to optimize fuel consumption and reduce emissions.” But Singh also emphasized the need for robust planning: “It is vital to involve finance teams early to understand the cost implications of CORSIA compliance,” he added.

This concern over cost is echoed across the industry. Sustainable Aviation Fuel (SAF), seen as a key enabler of low-carbon flight, currently costs five times more than traditional jet fuel, a pricing mismatch that makes large-scale adoption challenging without subsidies or policy incentives. In spite of this, industry leaders are optimistic.  Aditya Ghosh, Co-Founder of Akasa Air and former President of IndiGo, believes India can play a pivotal role in reshaping the economics of green aviation: “India can play a leading role with respect to sustainable aviation fuel by plugging into the global supply chain opportunities.” However, he warned of a growing financial gap, adding: “There is a funding gap of around $350 million between traditional aviation fuel and a 10% SAF blend.”
This gap poses a serious question for airlines: Should passengers absorb this cost through ticket prices, or will governments and fuel producers step in to help bridge it? So, what does aviation need? The answer lies in Tech-Led innovation and policy reform.

Beyond SAF, Indian airlines are also investing in data-driven efficiencies and emerging aircraft technologies to reduce carbon intensity. Ajay Singh, Chairman and Managing Director of SpiceJet, offered a forward-looking perspective: “We need to use technology advances like artificial intelligence and machine learning to find new ways to burn fewer fossil fuels. We need to aggressively pursue the development of electric aircraft for our future flying needs.” He further urged the government to foster a more supportive ecosystem: “India needs to reduce taxes on aviation turbine fuel and improve the business environment to make the sector globally competitive.”

These structural reforms, combined with strategic partnerships, could position India as both a hub for sustainable aviation and a leading voice in shaping equitable global climate policy.

As India’s aviation market is projected to become the world’s third-largest by 2030, the country has a unique opportunity to demonstrate how rapid growth can coexist with environmental responsibility. The transition won’t be easy: high fuel prices, regulatory compliance, and supply chain hurdles for SAF and offsets will require shared responsibility across the aviation value chain.

But with forward-thinking leadership, fleet investments, and a collaborative approach to sustainability, Indian aviation could become a case study in how to scale responsibly lifting passengers and carbon standards at the same time.