Air travel in India is set to become more expensive as airlines begin adding fuel surcharges to offset rising aviation turbine fuel (ATF) costs triggered by escalating geopolitical tensions in the Middle East.
Akasa Air has announced that it will introduce a fuel surcharge on all new bookings starting March 15, 2026, citing a sharp increase in ATF prices driven by global energy market disruptions linked to ongoing tensions involving Iran, the United States and Israel.
The surcharge will range between INR 199 and INR 1,300, depending on flight duration, and will apply to both domestic and international routes. The airline clarified that the additional charge will apply only to tickets booked after 00:01 hours on March 15, and will be levied per sector. Passengers who booked tickets before the deadline will not be affected.
Akasa Air added that it will continue monitoring the operating environment and may review the surcharge depending on fuel price trends.
The move comes as several Indian carriers respond to rapidly rising fuel costs and operational disruptions in global aviation markets.
India’s largest airline, IndiGo, also introduced a sector-based fuel surcharge starting March 14. The airline said the charges will begin at INR 425 for domestic and Indian subcontinent routes and may go up to INR 2,300 for long-haul flights to Europe.
Full-service carrier Air India and its low-cost subsidiary Air India Express have also implemented phased increases in fuel surcharges beginning March 12.
Under the revised structure, domestic and SAARC routes now carry an additional INR 399 surcharge, while flights to West Asia attract a USD 10 surcharge. Charges on Southeast Asia routes have increased from USD 40 to USD 60.
Air India has indicated that surcharges will increase further on long-haul sectors starting March 18. Flights to Europe will see an additional USD 125 surcharge, while routes to North America and Australia will carry a USD 200 charge. The airline has also suggested that adjustments may be introduced for Far East markets including Japan and South Korea.
Low-cost carrier SpiceJet has also warned that airlines may have little choice but to raise fares if fuel prices continue to climb.
SpiceJet Chairman Ajay Singh has urged the Government of India to consider reducing excise duties and state VAT on aviation turbine fuel, arguing that the tax burden significantly increases operating costs for airlines in the country.
Industry analysts note that aviation turbine fuel typically accounts for around 40% of an airline’s total operating expenses, making it the single largest cost component for carriers.
ATF prices have surged sharply since early March amid growing instability in global oil markets. The widening geopolitical crisis in West Asia has disrupted supply expectations and pushed crude oil prices higher, directly affecting aviation fuel costs.
In addition to higher fuel prices, airlines are also facing operational challenges as several international carriers are avoiding sensitive airspace in parts of the Middle East.
These airspace restrictions are forcing aircraft to take longer flight paths, increasing fuel consumption, flight time and overall operating expenses.
Industry observers say the combined impact of higher fuel prices and longer routes is placing significant pressure on airline margins, particularly for low-cost carriers operating in price-sensitive markets like India.
If fuel prices remain elevated, analysts expect airlines to continue adjusting fares and surcharges over the coming months, potentially pushing ticket prices higher across both domestic and international sectors.
