Air India, IndiGo and Akasa Air raise fares as jet fuel prices surge; check details here

A sharp increase in jet fuel prices, driven by the ongoing conflict involving the United States, Israel and Iran, has begun to impact the global aviation sector, forcing airlines to raise ticket prices, introduce surcharges and reassess financial projections.

Jet fuel prices have surged dramatically in recent weeks, rising from around $85 to $90 per barrel to as high as $150 to $200 per barrel. This steep increase has placed significant strain on airlines, where fuel expenses can account for up to one quarter of total operating costs.

In response, several carriers including Air India, IndiGo and United Airlines have increased ticket prices, introduced fuel surcharges on multiple routes and raised fees for baggage and additional services.

At the same time, many airlines are revisiting their financial outlooks, postponing expansion plans and prioritising cost control and operational efficiency.

Airlines worldwide respond with fare hikes and cuts

• Air India

Air India has revised its fuel surcharge model, shifting from a flat domestic fee to a distance-based structure.

Under the new system, passengers travelling short distances between 0 and 500 kilometres will pay an additional ₹299 per sector, while those flying routes longer than 2,000 kilometres will be charged up to ₹899.

The Tata Group-owned airline previously stated that the revised surcharge would come into effect from April 8 for domestic travel and from April 10 for key international sectors.

• Akasa Air

Akasa Air has also increased fares, citing a significant rise in aviation turbine fuel costs. From March 15, the airline introduced a fuel surcharge ranging from ₹199 to ₹1,300 on both domestic and international routes for new bookings.

The airline clarified that the revised pricing does not apply to tickets booked before 00:01 hrs on March 15, 2026.

• IndiGo

IndiGo, India’s largest airline, has introduced fuel surcharges on both domestic and international flights. These include additional charges of up to ₹950 per sector on domestic routes and up to ₹10,000 on long-haul international journeys for all new bookings from April 2.

• AirAsia

The Malaysian carrier AirAsia has reacted by reducing its flight operations by 10 per cent across the group. It has also implemented an approximate 20 per cent fuel surcharge, according to an executive from the airline.

• Air France KLM

Air France has announced plans to raise ticket prices on long-haul routes to offset rising fuel costs. Cabin fares are expected to increase by 50 euros, roughly Rs. 5,000, per return journey.

• Air New Zealand

Air New Zealand was among the earliest carriers to respond when the conflict began. It has since announced fare increases, reductions in flight schedules through May and June, and the suspension of its full-year earnings forecast due to uncertainty in fuel prices.

• Alaska Air

Alaska Air has raised fees for checked baggage, increasing the cost of the first bag by $5, approximately ₹462, and the second by $10, around ₹925, on its North American routes as well as for its Hawaiian Airlines operations. Charges for a third checked bag have been increased significantly from $50 to $200.

• American Airlines

American Airlines has taken similar steps by increasing fees for the first and second checked bags by $10 each, and by $150 for a third checked bag on domestic and short-haul international routes. The airline has also reduced certain benefits available to economy class passengers.

• Delta Air Lines

Delta has announced plans to reduce its capacity by about 3.5 percentage points from its original schedule. It has also increased checked baggage fees, adding $10, roughly ₹925, for the first and second bags, and $50, around ₹4,629, for the third bag.

The airline’s chief executive said it would delay updating its full-year financial outlook due to uncertainty over how long the surge in fuel prices may continue.

• Pakistan International Airlines

Pakistan International Airlines has announced fare increases, raising domestic ticket prices by $20, approximately ₹1,660, and international fares by up to $100, about ₹8,300, citing higher fuel costs.

• Turkish Airlines and Lufthansa

SunExpress, a joint venture between Turkish Airlines and Lufthansa, has confirmed a temporary fuel surcharge of 10 euros, approximately ₹1,085, per passenger. This will apply to routes between Turkey and Europe for bookings made on or after April 1, for travel from May 1 onwards.

• United Airlines

United Airlines has indicated it will scale back unprofitable routes over the next two quarters as it prepares for oil prices to remain above $100, approximately ₹8,300, until the end of 2027, according to CEO Scott Kirby.

The airline has managed to increase fares without significantly affecting demand, said Chief Commercial Officer Andrew Nocella. It has also raised checked baggage fees by $10, approximately ₹830, for the first and second bags on routes across the United States, Mexico, Canada and Latin America.