NEW DELHI: From Rs 36,500 a month ago, one-way non-stop airfares in economy class between New Delhi and Rome have skyrocketed to Rs 142,000 as airlines go for a steep hike in ticket prices in the backdrop on West Asia conflict which has resulted in fewer options with longer routes, a surge in jet fuel prices, addition of fuel surcharge and removal of fare caps by the government. This sharp surge is expected to weigh on travellers’ plans in the summer holiday season.
Airfares have gone up in the domestic market as well, especially between key metro sectors and popular holiday destinations. For example, spot airfare from Bengaluru to Delhi, which generally comes at around Rs 6,000-7,000, has surged above the Rs 8,000 level. From Kolkata to Mumbai, the same has gone up from Rs 5,500 to Rs 6,800.
Rajiv Mehra, General Secretary of Federation of Associations in Indian Tourism & Hospitality (FAITH) stated that on key metro routes such as Delhi–Mumbai, Delhi–Jaipur and Mumbai–Chennai, fares have already risen in the range of 15–20%. However, this increase gets more pronounced in last-minute bookings, where fares in some cases have even gone up by 25–40%, and on some leisure routes, like Goa or Srinagar, a major spike has been noticed.
He added that international airfares are also up even though the demand is muted as only essential travel is happening. Looking ahead, fares are expected to rise further in the coming weeks as ATF prices undergo another revision. Given that fuel accounts for nearly 35–45% of an airline's operating costs, even marginal increases can lead to ticket pricing.
"The impact of these rising airfares on the tourism sector is expected to be significant, particularly in the leisure travel segment…We are already seeing a lot of cancellations. Destinations that are perceived as more affordable or accessible such as Southeast Asia or domestic hill stations are likely to benefit from this redistribution of demand. The war has led to a lot of cancellations for western destinations and the US region,” stated Mehra.
A spokesperson at Cleartrip stated that the USA stands out as the costliest international destination right now. Similarly, fares to popular European summer spots such as France, Greece, and Italy have increased. The spokesperson added that there has been a significant demand towards short-haul international trips, particularly to Southeast and Central Asia.
This has led to a remarkable surge in bookings for places like Almaty in Kazakhstan, as well as Thailand and Malaysia, which have benefited from increased flight capacity. The standout performer, however, has been the Philippines, which has seen an incredible 3x increase in bookings.
"Other destinations like Bali, Colombo, Vietnam, and Singapore are also favourites, especially since their convenient 3-4 hour flight time makes them perfect for a quick getaway," stated the spokesperson.
The ongoing war in West Asia, escalating since late February 2026 and involving the US-Israel coalition and Iran, has severely disrupted global and regional travel, causing massive cancellations and revenue losses for hotels and airlines. The conflict has also disrupted the global oil supply chain with global ATF prices doubling to $200 a barrel.