India’s largest airlines raise fares as fuel costs surge

Two of India’s largest airlines, Air India and IndiGo, have announced fuel surcharges for passengers as airlines face rising costs linked to the global energy crisis triggered by the war involving the United States, Israel, and Iran.

According to Al Jazeera, the price of aviation turbine fuel (ATF) has surged since early March 2026 due to supply disruptions. ATF accounts for nearly 40% of airlines’ operating expenses, making it one of the largest cost components for carriers.

Announcing the move earlier this week, Air India said the sharp increase in fuel prices had forced the airline to adjust its fares.

“Since early March 2026, prices for aviation turbine fuel (ATF), which accounts for nearly 40% of airlines’ operating expenses, have increased significantly due to supply disruptions,” the airline said.

As a result, Air India plans to raise ticket prices by about $90 to offset the higher fuel costs.

Meanwhile, IndiGo, another major Indian carrier, announced on Friday, March 13, that it would also increase fares, introducing a surcharge of nearly $30 to help cover rising aviation fuel expenses.

By Tamilla Hasanova