Sky-high prices: Airlines pass 8.5% jet fuel hike to passengers; tickets see ₹7,300 jump in one month

NEW DELHI: In response to an 8.5% hike in Aviation Turbine Fuel (ATF) prices—triggered by the ongoing conflict in the Middle East—airlines have begun significantly increasing ticket prices.

Gulf route impact

Fares to the Gulf region have seen a sharp upward trend. Historically starting around Rs 30,000, prices have climbed by approximately Rs 5,000. Furthermore, since March 14, airlines have been levying an additional fuel cess ranging from Rs 425 to Rs 2,300 on both domestic and international tickets. When these factors are combined, the total cost to fly to the Gulf has increased by roughly Rs 7,300 in just one month.

IndiGo leads the fare hike

Effective this Thursday, IndiGo has increased its fares across domestic and international sectors by amounts ranging from Rs 275 to Rs 10,000. Other airlines are expected to follow suit shortly.

This move comes after the Central Government lifted fare-hike restrictions—originally imposed during the IndiGo operational crisis last December—allowing airlines the autonomy to adjust pricing based on market conditions and fuel surcharges.

New Surcharge Breakdown (IndiGo)

Domestic Services (by distance):

• Up to 500 km: Rs 275
• 501 – 1,000 km: Rs 400
• 1,001 – 1,500 km: Rs 600
• 1,501 – 2,000 km: Rs 800
• Above 2,000 km: Rs 950

International Services:

• UK & Europe: Rs 10,000
• Gulf Region: Rs 3,000 – Rs 5,000
• SE Asia & China: Rs 3,500 – Rs 5,000
• Africa: Rs 5,000

Economics of the increase

The price of ATF (Aviation Turbine Fuel) per kiloliter has surged from Rs 96,638.14 to Rs 1,07,341.22. While only 25% of the total price hike (roughly Rs 15 per liter) is being applied to domestic services, ticket prices generally increase by 40% in direct proportion to fuel price volatility.