Airspace curbs and rising fuel costs have put Indian airlines under fresh strain, even as the regulator moves to ease compliance norms to support the sector’s growth, Directorate General of Civil Aviation (DGCA) chief Faiz Ahmed Kidwai said on Thursday.Speaking at the ICC Aviation and Tourism Summit here, Kidwai flagged that prolonged airspace restrictions, particularly over Pakistan and parts of West Asia, were forcing carriers to take longer routes, significantly pushing up operational costs.He said the situation had become more complex amid the West Asia conflict, with several airlines scaling back services to the region. Longer flight paths mean higher fuel burn, reduced payload capacity and, in turn, a direct hit on airline revenues.Kidwai noted that carrying additional fuel leaves less room for passengers and cargo, squeezing margins at a time when costs were already elevated. He expressed hope that the sector would see improvement in the near future, even as airlines navigate what he described as an unusually challenging operating environment.At the same time, the regulator is recalibrating its approach to strike a balance between passenger protection and industry viability. Kidwai said the DGCA was working to simplify rules and reduce regulatory friction to help airlines expand sustainably.He underscored that the focus was not limited to passenger rights alone, but also extended to creating a more enabling framework for airlines to operate and grow. Stressing the need for a stable ecosystem, he pointed out that multiple carriers had shut down operations in India over the years, highlighting the fragility of the business.India remains one of the fastest-growing aviation markets globally, with both the DGCA and the Civil Aviation Ministry rolling out measures to support capacity expansion and improve passenger experience.In a recent move, the regulator decided that 60 per cent of seats on domestic flights would be offered without additional charges. It also withdrew the fare cap that had been imposed following operational disruptions faced by IndiGo in December 2025. However, Indian operators have objected to it.