The Centre is considering reviving its Rs 10,000-crore aviation turbine fuel price stabilisation fund. The move comes as rising jet fuel costs push up airfares.

A senior official said the government is weighing a fresh mechanism to stabilise ATF prices, PTI reported. Civil Aviation Minister K Rammohan Naidu said the government is in talks with airlines and oil marketing companies on the issue.

"One of the most important things is how the West Asia crisis is putting a big burden on ATF prices," Naidu said on the sidelines of a conference in New Delhi.

Fuel costs are hurting airlines badly. Jet fuel now accounts for 55 to 60 percent of airline operating costs, compared with 30 to 40 percent historically, the Federation of Indian Airlines said.

IndiGo, India's largest airline, raised fuel surcharges on October 6. Domestic charges went up by Rs 375 to Rs 1,300. The airline said ATF prices rose over 14 percent in a month.

Ratings agency Crisil estimates domestic airlines' operating profit could fall 10 to 15 percent this fiscal year because of higher fuel costs.