Leading Indian airlines have started increasing fuel surcharges on domestic and international flights due to the ongoing conflict between Iran and the US-Israel bloc. Aviation turbine fuel (ATF) prices are rising. Indigo took the latest such step on Friday.
Global prices of ATF, which typically account for 40% of an airline’s operating expenses, have seen a “sharp rise” since the beginning of March 2026 due to regional supply disruptions.
How are the prices being increased? List and description
Indigo: India’s largest carrier said it will start levying sector-based fuel charges on all domestic and international tickets from March 14, 2026. The airline said that while a “substantial adjustment” would be required in base fares to fully offset the ATF increase, it has opted for the smaller fee to benefit passengers. Sector-wise charges are:
- Domestic and Indian Subcontinent: ₹425
- Middle East: ₹900
- Southeast Asia and China: ₹1,800
- Africa and West Asia: ₹1,800
- Europe: ₹2,300
Air India Group: Air India and AI Express The surcharge was announced to be implemented in a phased manner starting March 12, 2026. The group warned that without these adjustments some flights would become economically unviable.
- Phase 1 (from March 12): Overloading of ₹399 applicable on domestic and SAARC routes. West Asia/Middle East routes carry a $10 surcharge, while on routes to Southeast Asia the fee has increased from $40 to $60.
- Phase 2 (from March 18): Surcharges on long-haul routes will increase significantly: Europe will rise to $125, while North America and Australia will rise to $200.
- Phase 3: Future adjustments are planned for Far East markets, including Japan and South Korea.
Other: Budget carrier SpiceJet has warned that if oil prices remain high, airlines will have no option but to impose surcharge. Founder Ajay Singh has urged the government to reduce excise duty and VAT on jet fuel, noting that prices are becoming unsustainable even at $90 a barrel. Another low-cost carrier, AirAsia, has confirmed that it has increased fares and adjusted fuel surcharges, although it is yet to specify the exact region-wise hikes.
Why are airfares increasing globally?
This shows a surge in home prices Volatile global markets. Jet fuel prices have almost doubled since the conflict began on February 28.
In addition to fuel costs, the industry is grappling with major flight disruptions.
Many carriers are avoiding West Asian and nearby airspace due to security concerns, leading to longer, more expensive alternative routes. Aviation analytics firm Cirium reported that more than 43,000 flights to and from the Middle East were canceled between February 28 and March 10.
Among international carriers, Cathay Pacific plans to double its passenger fuel surcharge to HK$1,164 on long-haul flights from March 18; Hong Kong Airlines increasing surcharges by 35.2%; Finnair has canceled all flights to Doha and Dubai until the end of March and is building fuel costs directly into base ticket prices; Air New Zealand has suspended its earnings forecast and warned of further fare and route adjustments; While Qantas, SAS Scandinavian Airlines and Thai Airways have also confirmed fare increases or temporary surcharges to mitigate the impact.