Airfare Increases Both Locally and Internationally as Fuel Costs Rise

Airfare Increases Both Locally and Internationally as Fuel Costs Rise

Airfares for numerous domestic and international routes are climbing as aviation fuel costs escalate and flight operations encounter disruptions due to the ongoing conflict in West Asia.

Airlines have started implementing increases in surcharges and ticket prices on various routes. The Air India Group has unveiled a gradual uptick in fuel surcharges for both domestic and international flights, citing a significant rise in aviation turbine fuel (ATF) prices.

According to the new structure, all reservations made from March 12 will incur a ₹400 fuel surcharge on domestic flights. For international routes, passengers will be charged an extra $10 for flights to West Asia, while the surcharge on Southeast Asian routes will escalate from $40 to $60 and on Africa routes from $60 to $90. Effective March 18, the surcharge for flights to Europe will jump from $100 to $125, while routes to North America and Australia will rise from $150 to $200. The airline stated that the surcharge will be implemented in phases and assessed periodically.

Also Read: India proposes tighter compliance rules for foreign airlines

Globally, airlines across Asia, Europe, and Australia have started increasing fares, applying fuel surcharges, or modifying schedules as jet fuel prices ascend sharply and critical air routes are disrupted. Jet fuel prices, previously around $85-90 per barrel before the US–Israeli strikes on Iran, have surged to $150-200 per barrel.

Australia’s Qantas Airways, Scandinavia’s SAS, and Air New Zealand are among the airlines that have announced fare hikes. Carriers such as Cathay Pacific, AirAsia, and Thai Airways are also raising ticket prices or fuel surcharges in response to rising oil costs and limited access to key routes.

Disruptions in West Asian airspace have further pressured fares by redirecting travelers to alternative routes and heightening demand for the remaining services. Airlines are also adapting their networks in light of these disruptions.

Also Read: US’ JetBlue Airways requests nationwide ground stop; FAA halts flights at all destinations

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