Airlines Hike Fares as West Asia Conflict Sends Oil Prices Soaring

The global prices of ATF, which typically accounts for 40% of an airline's operating expenses, has seen a “sharp surge”| India News

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Leading Indian airlines have begun hiking fuel surcharges on domestic and international flights as the ongoing conflict between Iran and the US-Israel bloc sends aviation turbine fuel (ATF) prices spiraling.

IndiGo made the latest such move on Friday, introducing sector-based fuel charges on all domestic and international tickets starting March 14, 2026.

The sector-wise charges are: Domestic & Indian Subcontinent: ₹425, Middle East: ₹900, Southeast Asia & China: ₹1,800, Africa & West Asia: ₹1,800, Europe: ₹2,300.

Air India group announced a phased rollout of surcharges that began on March 12, 2026, with a surcharge of ₹399 applying to domestic and SAARC routes, and $10 surcharge on West Asia/Middle East routes.

Budget carrier SpiceJet warned that airlines have little choice but to impose surcharges if oil remains high, while AirAsia confirmed it has raised fares and adjusted fuel surcharges.

The global prices of ATF have seen a 'sharp surge' since early March 2026 due to regional supply interruptions, with jet fuel prices roughly doubling since the conflict began on February 28.

Many carriers are avoiding the West Asian and adjacent airspace due to security concerns, leading to longer, more expensive alternative routes.