Airfares set to rise as IndiGo adds fuel surcharge due to West Asia tensions

India’s largest airline IndiGo will increase ticket prices after announcing a fuel surcharge on its flights, citing a sharp rise in jet fuel costs linked to the ongoing conflict in the West Asia.

The airline said the additional charge will come into effect from March 14 for both domestic and international routes. The move follows a surge in aviation turbine fuel (ATF) prices triggered by the ongoing war involving Iran, the United States and Israel.

The surcharge will vary depending on route length and destination, ranging roughly from ₹425 to ₹2,300 per ticket, according to the airline’s announcement.

Rising fuel costs force airlines to pass on burden

Airlines globally are grappling with rising operating costs after jet fuel prices surged amid disruptions to oil supply routes and shipping in the West Asia. Aviation fuel accounts for nearly 40 percent of an airline’s operating expenses, making carriers highly sensitive to sudden spikes in global oil prices.

Since late February, the war in the region has disrupted global energy flows and pushed up crude oil prices, which in turn has sharply increased aviation fuel costs. Global jet fuel prices have jumped more than 58 percent in early March, according to market data, creating severe cost pressure for airlines worldwide.

IndiGo said that while the increase in fuel prices would normally require a larger fare adjustment, the airline has opted for a smaller surcharge to limit the impact on passengers.

The airline’s move mirrors similar decisions by other carriers, including Air India and Air India Express, which have also introduced fuel surcharges as operating costs rise due to the geopolitical crisis.

Iran war disrupts aviation routes and global travel

The aviation sector has been among the industries most affected by the ongoing conflict. The war has forced airlines to reroute flights, avoid certain airspaces and deal with rising insurance and fuel costs.

The broader conflict has also disrupted global supply chains and energy markets, pushing airlines to adjust operations and pricing strategies.

Indian carriers have been particularly vulnerable because the crisis coincides with existing airspace restrictions and longer flight routes, which increase fuel consumption and operating costs. Some airlines have also sought government support to manage the financial strain caused by these disruptions.

For passengers, the immediate impact will be higher ticket prices as airlines attempt to offset rising fuel expenses. Industry analysts say fares could remain elevated as long as geopolitical tensions continue to affect oil markets and aviation routes.