West Asia conflict: How Air India, IndiGo, Akasa fuel surcharge hikes are making flights costlier

Air travel is set to become more expensive for passengers as Indian airlines raise fuel surcharges following a sharp rise in aviation turbine fuel (ATF) prices triggered by the ongoing conflict in West Asia. Escalating tensions in the Middle East have pushed crude oil prices higher globally, increasing operating costs for airlines and forcing carriers to pass on part of the burden to passengers.

Almost all major Indian airlines, including IndiGo, Air India and Akasa Air, have announced fare hikes in the form of fuel surcharges over the past few days, citing a steep rise in fuel prices and continued uncertainty in the region.

Akasa Air said it will introduce a fuel surcharge on all new bookings from March 15, 2026, ranging from ₹199 to ₹1,300 on domestic and international routes. 

“This will not be applicable for any bookings made prior to 00:01 hrs on March 15, 2026. The fuel surcharge will be applied per sector and will vary based on the duration of the flight,” an airline spokesperson said, adding that the airline will review the surcharge periodically depending on fuel price movements.

The move follows similar action by IndiGo, India’s largest airline by market share, which announced a fuel surcharge effective March 14, citing a sharp increase in jet fuel prices due to geopolitical tensions in the Middle East.

IndiGo said the surcharge will range from ₹425 to ₹2,300 depending on route and distance. “This measure is taken due to the significant surge in fuel prices following ongoing geopolitical tensions in the Middle East,” the airline said in a statement, adding that jet fuel prices in the region have risen sharply amid the conflict.

Under the revised charges, domestic and nearby international destinations will attract lower surcharges, while long-haul routes will become significantly costlier. Flights within India and the subcontinent will see a surcharge of about ₹450, while travel to the Middle East will cost about ₹900 extra. Routes to Southeast Asia and China will attract around ₹1,800, and flights to Europe could see surcharges of up to ₹2,300.

Air India has also announced a phased increase in fuel surcharge on both domestic and international routes, saying the hike is necessary to maintain operations amid rising fuel costs. The airline said ATF accounts for nearly 40% of an airline’s operating expenses, making the sector highly sensitive to crude oil price movements.

Under the first phase implemented from March 12, a surcharge of ₹399 has been added on domestic and SAARC routes, while international surcharges have been raised across West Asia, Southeast Asia and Africa. Further increases from March 18 will affect Europe, North America and Australia routes, with additional hikes planned for Far East destinations later.

Air India said existing tickets will not be affected unless modified, and the surcharge is required to avoid disruptions in operations.

ATF prices have risen sharply since early March as the conflict involving the US, Israel and Iran has disrupted supply flows in the Gulf region, raising concerns over shipments through key energy routes. The impact is more severe in India because aviation fuel attracts high excise duty and state VAT, especially in metro cities such as Delhi and Mumbai, increasing cost pressure on airlines.

With crude oil prices remaining volatile, airlines said fare levels may continue to fluctuate if geopolitical tensions persist.