Winning Bizness Desk

Mumbai.India’s largest airline Indigo has announced an increase in ticket prices for both domestic and international flights, following a similar move by Air India earlier this week. The airline said the decision comes in response to a steep rise in jet fuel prices triggered by geopolitical tensions in the Middle East. The new fuel surcharge will come into effect from midnight on March 14, making air travel costlier for passengers across several routes.

Fuel surcharge imposed after sharp jet fuel rise

Indigo said passengers will have to pay an additional fuel surcharge ranging from ₹425 on domestic flights to as much as ₹2300 on international routes. The airline clarified that the extra charge has been structured based on the distance of travel in order to reduce the burden on passengers as much as possible.

According to the airline, jet fuel prices have surged sharply because of the ongoing conflict involving Iran, and tensions between the United States and Israel. The disruption in energy markets has pushed aviation fuel costs significantly higher, forcing airlines to adjust fares.

Key points about the surcharge include:

• Fuel surcharge ranges between ₹425 and ₹2300 depending on route distance
• Applicable on both domestic and international Indigo flights
• New ticket prices become effective from 12 midnight on March 14
• Airline says charges may be revised depending on fuel price movement

The company said it will continue to monitor the situation closely and make further adjustments if fuel prices change.

Air India already raises domestic flight fares

Indigo’s move comes just days after Air India introduced its own fuel surcharge. The Tata Group airline has already increased domestic flight ticket prices by ₹399 starting March 12.

For international routes, Air India has raised fares by nearly 15 percent due to rising operating costs linked to jet fuel. Airlines across the world have been forced to increase fares as the cost of aviation turbine fuel continues to rise sharply.

Many global carriers are also reviewing their operational plans. Some airlines are even considering grounding certain aircraft temporarily to control rising costs and manage fuel consumption more efficiently.

Jet fuel prices nearly double after conflict

The surge in fuel prices is largely attributed to the conflict that began on February 28 between Iran and Israel, which has disrupted oil supply chains and created volatility in global energy markets.

As a result, crude oil prices have climbed steadily in recent weeks.

Important developments in the oil market include:

• Brent crude currently trading around 101 dollars per barrel
• Prices recently touched nearly 120 dollars per barrel
• Jet fuel prices globally rising to around 150–200 dollars per barrel
• Earlier jet fuel price range was around 85–90 dollars per barrel

These increases have significantly raised operating expenses for airlines worldwide.

Jet fuel remains the biggest airline expense

Jet fuel accounts for the largest share of airline operating costs, typically making up between 30 percent and 40 percent of total expenses. Because of this heavy dependence, even small changes in fuel prices can have a major impact on airline finances.

The sudden spike in oil prices has disrupted financial planning for several airlines. Many companies have already withdrawn their financial outlook projections due to uncertainty in the market.

Major airlines such as Air New Zealand and Qantas have indicated that the higher fuel costs will inevitably be passed on to passengers through increased ticket prices.

Global airlines also increase fares

Several international carriers have already implemented fare hikes as fuel costs continue to rise.

Air New Zealand announced a significant fare increase earlier this week. The airline has raised one-way domestic ticket prices by 10 New Zealand dollars. Short-haul international flights will cost 20 dollars more, while long-haul fares have been increased by 90 dollars. The airline has also withdrawn its earnings forecast for 2026 due to market instability.

Hong Kong Airlines has decided to increase its fuel surcharge by up to 35.2 percent starting Thursday. The surcharge for routes to destinations such as Maldives, Bangladesh and Nepal has been raised from 284 Hong Kong dollars to 384 Hong Kong dollars.

Meanwhile, Cathay Pacific has introduced additional flights to London and Zurich in March to provide alternative travel options for passengers affected by disrupted routes. The airline said it is reviewing fuel surcharges every month.

Qantas Airways of Australia has also increased fares on international routes, although it said flights to Europe are operating at more than 90 percent capacity. Scandinavian carrier SAS has introduced temporary price adjustments as well to manage rising operational costs.

Key global developments include:

• Air New Zealand increases domestic and international fares
• Hong Kong Airlines raises surcharge by over 35 percent
• Qantas hikes international ticket prices amid strong demand
• SAS introduces temporary fare adjustments due to rising costs

With fuel prices remaining volatile, airlines worldwide are expected to continue reviewing fares and operational strategies in the coming months.