Iran War Hits Airlines: Air India Fuel Surcharge, Flight Cancellations & Fare Surge

The Iran war is sending shockwaves through global aviation. Airlines worldwide are facing soaring fuel prices, massive flight cancellations and major route disruptions across the Middle East — one of the busiest air corridors connecting Europe, Asia and Africa. More than 43,000 flights in the region have already been cancelled or disrupted as carriers avoid conflict zones. Jet fuel prices have surged dramatically, forcing airlines to raise ticket fares and impose new fuel surcharges. India’s aviation sector is among the hardest hit. Air India and Air India Express have announced phased fuel surcharge hikes beginning March 12, while SpiceJet has warned that carriers may have no choice but to increase fares further. Global airlines including Qantas, AirAsia, Hong Kong Airlines and Air New Zealand are also raising prices or reviewing fuel levies. Meanwhile, airlines like British Airways, Lufthansa and Air France-KLM are reshaping routes and adding flights to alternative destinations. For travellers, the result is clear — longer routes, higher fares and uncertainty for upcoming summer travel.