What is the story about?
New Delhi: If you’re planning to fly soon, be prepared to pay more. Airfares are expected to rise sharply as jet fuel prices have suddenly shot up. This
spike has come after the Iran war, which has pushed global oil prices higher.Jet fuel, also called Aviation Turbine Fuel (ATF) has become much more expensive in April:
- For domestic flights, prices have jumped by about 115%
- For international flights, prices are up by around 107%
In Delhi, ATF for domestic flights has now crossed Rs 2 lakh per kilolitre (1,000 litres) for the first time ever.
For international flights, fuel prices have crossed $1,000 per kilolitre, another first for India.
Also Read: Commercial LPG Prices Hiked By Rs 195.50, Domestic Rates Unchanged Amid Escalating West Asia Conflict
At the same time, the Indian rupee has weakened to record lows (over Rs 95 per dollar), making fuel even costlier because airlines pay in dollars.
Why is this a big deal?
Fuel is the biggest expense for airlines. Earlier, it made up 40–45% of total costs. Now, this share will rise even more. This means airlines are suddenly facing a massive increase in operating costs - something many of them may struggle to handle.
What will airlines do now?
Airlines don’t have many options. Here’s what is likely:
- Airfares will go up
- Airlines will pass on the higher fuel costs to passengers
- Flights may be reduced
- If some routes are not profitable, airlines may cut those flights
Fuel surcharge may increase further
Airlines like IndiGo, Air India, and Akasa Air had already added fuel surcharges last month - these could rise again.
Earlier, there was a cap on domestic airfares (Rs 18,000), but that was removed in March 2026.
Also, airlines have not received any relief from the government on fuel taxes, which remain high in India compared to global standards. Airlines are already warning that the real impact is yet to come.
Campbell Wilson, CEO of Air India, said, "The financial impact of (Iran war) crisis is yet to be fully felt, as although the spot price of jet fuel has more than doubled, most of the impact will only hit us from next month.”
He also warned, "Depending on how fuel costs, airfares and customer demand moves, we may also have to adjust.”
At the same time, he pointed out a key challenge: "Not every customer is willing to pay higher airfares so there is a limit to how high we can price before demand drops.”
What this means for passengers
- Flights will likely become more expensive in the coming weeks
- Some routes may see fewer flights or cancellations
- Travel demand could slow down if prices rise too much
For now, passengers should expect costlier flights and fewer deals, especially during peak travel periods.
