NEW DELHI: IndiGo, which controls nearly two-thirds of domestic air traffic, is introducing a fuel charge on domestic and international routes, effective 00:01 hours on March 14, 2026. According to the country’s largest airline, the measure is taken due to the significant surge in fuel prices following the ongoing geopolitical issues in the Middle East.
IATA's Jet Fuel Monitor indicates an 85+% increase in fuel prices for the region. Jet fuel is the biggest expense for airlines, accounting for 30% to 40% of total operating costs.
For its flights, IndiGo has introduced fuel surcharge between Rs 399 and Rs 2,300.
"While offsetting the entire impact of this fuel price surge requires a very substantial adjustment to fares, IndiGo has introduced a relatively smaller amount as a Fuel Charge keeping in mind the consequential burden on customers," said the airline in a statement.
Earlier this week, Air India announced a hike in fuel surcharge between Rs 399 and $50 (Rs 4,600) amid the ongoing conflict in West Asia.
According to reports, the two major airlines have also requested the government to cut aviation fuel taxes and reduce private airport charges as the ongoing conflict and Pakistan airspace ban force longer routes, raising operational costs and straining airline finances.
For domestic and subcontinent flights, IndiGo will be charging a fuel surcharge of Rs 425 while for Middle East flights, passengers will have to pay Rs 900. For South East Asia, China, Africa and West Asia flights, a fuel surcharge is introduced at Rs 1,800, and for Europe it is kept at Rs 2,300.
IndiGo said that it regrets the inconvenience and added that it will continue to monitor the situation and make relevant adjustments as and when appropriate. With its fleet of 400+ aircraft, the airline operates around 2200+ daily flights, connecting 95+ domestic and 40+ international destinations.
Since tension escalated in West Asia after US and Israeli forces targeted key Iranian sites on February 28, oil and gas prices have seen a sharp surge. Brent crude prices have surpassed the $100/barrel mark following the continued closure of the Strait of Hormuz, limited storage facilities in the producer countries and the attacks on oil and gas infrastructure and vessels.
According to industry figures, jet fuel prices in many markets have doubled since the conflict began. In recent sessions, jet fuel prices are hovering between $150 and $200 per barrel, up from $85 to $90 per barrel before the war. Besides a surge in fuel prices, frequent airspace closure in the Gulf region, mass cancellations on busy routes and depreciation of the rupee are likely to weigh on airlines' revenue and operating market in the short term.
Industry experts had earlier said that airlines will start increasing airfares to brace the impact of the conflict and higher fuel prices.
Jagannarayan Padmanabhan, Senior Director & Global Head, Consulting, Crisil Intelligence told The New Indian Express that higher fuel costs almost inevitably translate into higher ticket prices if the shock persists. He added that airlines globally have already begun raising fares or adding fuel surcharges to offset the spike in jet fuel prices, because absorbing such large increases in fuel costs is not sustainable over long periods.
"While higher fares may soften discretionary leisure travel at the margins, India’s domestic aviation market continues to grow structurally, and passenger traffic is still expected to expand albeit modestly despite the cost pressures facing airlines," added Padmanabhan.