Rising tensions in the Middle East are beginning to affect airline passengers, with international airfares from India witnessing a sharp increase. Several Indian carriers have raised ticket prices for overseas routes by around 15 per cent, according to a report by Bloomberg. The surge comes as the ongoing conflict involving Iran and Israel disrupts global energy supplies and aviation routes. Higher jet fuel prices and longer flight paths due to restricted airspace have significantly increased operational costs for airlines, prompting them to pass on part of the burden to travellers.
Airfares Rise As Fuel Costs Climb
Industry experts say the increase in ticket prices is closely linked to rising jet fuel costs triggered by the conflict in the Middle East. Disruptions near the Strait of Hormuz have affected crude oil supplies, pushing aviation fuel prices upward.
Jet fuel accounts for nearly 30 to 40 per cent of an airline’s total operating expenses. As fuel prices rise, airlines have limited options other than increasing fares in order to manage higher costs.
The situation has been further complicated by the closure of airspace in around 10 to 12 countries in the region. As a result, airlines are being forced to take longer routes to avoid conflict zones. This has increased fuel consumption by nearly 15 to 20 per cent, while some flights are taking up to four hours longer than usual.
The price surge is already visible on several major routes. A Delhi-London ticket that typically costs between Rs 32,000 and Rs 40,000 recently climbed to around Rs 90,178. Similarly, the fare from Delhi to Abu Dhabi rose from about Rs 11,875 to nearly Rs 17,000, while the return ticket from Abu Dhabi to Delhi has reached around Rs 42,990.
Airlines Add Fuel Surcharge
Amid rising aviation fuel prices, Air India has introduced a higher fuel surcharge on both domestic and international flights. The airline said the decision was necessary due to the continued increase in the cost of Aviation Turbine Fuel (ATF), which has significantly raised operating expenses.
Under the revised structure, passengers on domestic and SAARC routes will pay a fuel surcharge of Rs 399. For Middle East routes, the surcharge will be 10 dollars, while passengers flying to Southeast Asia will pay an additional 60 dollars.
Air India is also reportedly preparing to introduce a second phase of surcharges, which could add up to 200 dollars on routes to North America and Australia.
Flight Cancellations & Industry Losses
The disruption has also led to a large number of flight cancellations. According to ratings agency ICRA, Indian airlines cancelled around 1,770 international flights between February 28 and March 5. Globally, the number of cancellations during this period has exceeded 27,000.
The situation is not only reducing airline revenues but also increasing costs through additional airport charges and higher fuel consumption.
ICRA estimates that Indian airlines could face a net loss of around Rs 17,000 to Rs 18,000 crore in the financial year 2025-26. Investor concerns were reflected in the stock market, where shares of IndiGo and SpiceJet fell by 3.4 per cent and 6.64 per cent respectively.
Airlines have now urged the Civil Aviation Ministry to provide relief by reducing taxes on jet fuel and lowering airport charges. Industry representatives have also suggested removing fare caps so that airlines can adjust ticket prices according to market conditions.
