Yes, ab sirf aap hi nahi, price bhi aasmaan chooega… bro what? 

At this time, airline travel could become significantly more costly in India. Major Indian airlines, including Air India, IndiGo, and Akasa Air, have recently levied additional fuel charges on domestic and international flights as the price of aviation turbine fuel (ATF) climbs higher and higher.

A report from Hindustan Times states that the price hikes come as tensions in West Asia have reached a fever pitch with Iran, the United States and Israel changing the dynamics of oil supply globally and creating upward price pressure that is ultimately driving the costs of jet fuel up. 

Yup, it is truly a “kyun, hila dala na,” situation for the world.

Airlines operate with several large expenses, one of the largest being the cost of aviation fuel. As a result, airlines are going to start passing at least some of this expense on to their passengers.

What Is A Fuel Surcharge?

A fuel surcharge is a charge in addition to the base ticket price that airlines typically impose on tickets to offset rising jet fuel costs. Airlines typically implement or increase fuel surcharges during periods when world market prices for jet fuel have significantly increased. Fuel surcharges are assessed separately from the base airfare; therefore, any surcharge assessed will directly increase the total fare paid by passengers.

How to be a “catch flights, not feelings” bro in this economy? 

There are some airlines that will use a strategy known as “fuel hedging” in order to manage unpredictable fuel price pressures that arise from time-to-time. They do this by locking-in their fuel prices for up to several months or even years into the future.  However, there are also airlines that don’t do this, and those that do will typically hedge only a small percentage of their fuel requirements. When fuel prices remain artificially elevated for extended periods of time, the airlines will generally have no alternative but to raise fares.

The reason is that the current escalation of hostilities in this area has slowed the flow of oil exports through the region. Major oil producing nations such as Saudi Arabian, Kuwait and Iraq have all experienced problems in shipping their oil out of their countries and have had to cut production in many cases.

Iran has also attacked commercial shipping in the Persian Gulf as well as had several attacks on oil processing facilities in countries located along that body of water since both the United States and Israel began their military strikes against Iran. 

These attacks will severely disrupt the free movement of oil through the Strait of Hormuz, the most critical waterway in the world and responsible for almost 20% of the world’s daily oil supply and will have a negative strategic and economic impact on the world.

Ye dukh kaahe khatam nahi hota hai…? 

Crude oil prices tend to rise sharply whenever the world’s supply of crude oil faces disruption. Since aviation turbine fuel is made from crude oil, any increase in crude oil price also translates into a higher price for jet fuel.

As a result, the airline industry is now facing much larger fuel costs around the world.

Restricted Airspace Is Making Flights More Costly

The geopolitical situation has also created a significant issue for airlines in the form of restricted airspace.

A number of airlines are now avoiding flying over portions of West Asia due to safety issues and are therefore required to take longer alternative routing options. This means that they will take longer to fly and use more fuel in doing so.

Longer flight routes will naturally require more fuel; thus, creating an increase in airline operating costs.

In addition to increased fuel costs, the increase in flight length has forced airlines to re-evaluate how they price tickets to cover their increased costs. As a result, many airlines have implemented the fuel surcharge as a quick method of offsetting these additional costs.

Maamla gadbad hai chat, and there’s no hiding it…

Air India Is Introducing New Fuel Surcharge Methodology

Air India has already begun to implement its gradual increase of fuel surcharges on its domestic and international flights. In its first phase, Air India will impose a fuel surcharge of ₹399 per passenger on all of its domestic flights beginning March 12, 2022. This surcharge will also apply to Air India’s flights within the SAARC region.

Surcharges vary on international routes by the point of origin/destination.

For example: 

• Fares for West Asia will incur an additional $10;

• Fares for Africa will incur an additional $30-$90;

• Fares for Southeast Asia will incur an additional $20-$60.

Air India’s next phase of increases to surcharge levels will begin on March 18, with long-haul surcharges being raised as well.

For flights to Europe, the surcharge will be increased to $125 from $100. For flights to North America, the surcharge will be increased from $150 to $200.

According to the Air India group via ANI, “the steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region.”

IndiGo Announces New Fuel Charges

India’s largest airline, IndiGo, has implemented new surcharges on fuel for both domestic and international flights.

IndiGo states the new charges will apply to all bookings starting March 14, 2026.

The additional fee will differ based on the route:

• For domestic journeys in India – ₹425

• Flights between India and Western Asia – ₹900

• Flights between India and Southeast Asia, China, and Africa – ₹1,800

• Flights between India and Europe – ₹2,300

According to IndiGo, most of an airline’s operating expenses are attributed to the price of aviation fuel and the current increase in its price has led to an additional charge.

Indigo bhai, aap bhi aisa karoge, toh hum kaha jaayenge? 

Fuel Surcharges from Akasa Air

Similarly, easyJet has announced that it will be introducing a fuel surcharge across all of its services, with fees ranging from ₹199 to ₹1,300 for domestic and international routes. 

Starting from March 15, 2026, Akasa Air will apply these surcharge rates to all flights purchased through their website or any travel agency.

The airline has indicated that each fuel surcharge will apply on a per-journey basis and will vary depending on the length of the journey. Longer journeys typically incur higher surcharges than shorter ones, as they utilize more fuel.

Global Airlines Also Amp Up Fuel Charges

Airlines in India are not the only carriers increasing fees due to rising fuel cost. Airlines worldwide have also begun to implement fuel surcharges as they struggle with the effect of an increase in fuel prices.

To begin, Cathay Pacific has announced plans to raise its passenger fuel surcharge on long-haul flights to HK$1,164 (double what it currently is) starting March 18, 2007.  

WOAH! 

Experts also predict that because of current geopolitical issues and the changing price of oil, airlines worldwide will have to implement additional fare hikes to adjust for current fuel prices.

Wait, will we face all these travel implications now? 

Passengers can expect their air travel to become significantly more expensive as the price of jet fuel continues to soar.

I don’t know how much more of this my corporate heart can take, guys. 

Even small surcharges will substantially increase the price of tickets, particularly for long-haul international flights.

As reported by Reuters, Willie Walsh, Director General of the International Air Transport Association, is estimating that the price of airfares could increase by as much as 9% due to the increased price of jet fuel.

Further, airlines are attempting to manage not only the rising cost of fuel but also longer routes and issues regarding the operations of these routes and the current high volatility of crude oil.

This indicates that the cost of airfare will remain elevated for the foreseeable future if geopolitical concerns in West Asia continue to affect the global supply of fluids.