Leading Indian airlines, including IndiGo and Air India, have announced increases in fuel surcharges on both domestic and international flights. This move comes as a direct response to the ongoing conflict between Iran and the US-Israel alliance, which has led to a significant rise in aviation turbine fuel (ATF) prices.
IndiGo, India’s largest carrier, will begin applying a sector-based fuel charge on all tickets starting March 14, 2026. The charges vary by region, with domestic flights seeing an increase of ₹425, while flights to the Middle East will incur a ₹900 surcharge. Other regions such as Southeast Asia and Europe will see charges of up to ₹2,300.
Air India and its subsidiary AI Express have also begun a phased implementation of surcharges from March 12, 2026. Initial surcharges include ₹399 for domestic routes and $10 for Middle East routes. By March 18, surcharges on long-haul flights to Europe and North America will rise significantly.
This surge in airfare is attributed to the doubling of jet fuel prices since the conflict began on February 28, 2026. Airlines are also facing operational challenges due to the closure of West Asian airspace, forcing them to take longer, costlier routes.
The aviation industry is urging the Indian government to consider reducing excise duties and VAT on jet fuel, as airlines struggle to maintain economic viability. With the situation in West Asia showing no signs of immediate resolution, further fare adjustments are anticipated.
Published in SouthAsianDesk, March 14, 2026
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