The flight charges in India are highly likely to be higher from next month, besides the curtailment of flight routes that in turn could create a tumbling of passenger traffic, due to the abrupt spike in aviation turbine fuel (ATF) prices caused by an oil crunch amid the ongoing US-Israel-led war on Iran, while domestic ATF prices for flights jumped almost 115% month-on-month to Rs 2.07 lakh on Wednesday (April 1) in Delhi.
The unprecedented escalation in jet fuel costs, which crossed the Rs 2 lakh mark for the first time in the national capital, has intensified cost pressures on Indian carriers, and industry observers warn that airlines may be compelled to recalibrate schedules, prune marginal routes, and rationalise frequencies, particularly on sectors where passenger footfalls remain vulnerable to fare volatility.
Fuel expenditures accounted for approximately 40% of total operating outlays before the hostilities, and this radical distortion of cost structures now necessitates the systematic transmission of financial burdens to the consumer.
According to revised price data, ATF in Mumbai, Chennai, and Kolkata now stands at Rs 1.95 lakh, Rs 2.15 lakh, and Rs 2.06 lakh per kilolitre, respectively, while rates for domestic airlines operating international services also witnessed a sharp escalation.
Variations in state levies continue to create differential pricing across cities, yet the overarching trajectory remains uniformly inflationary. The surge aligns with global jet fuel movements, as international prices, linked to the Mean of Platts Arab Gulf benchmark, have nearly doubled since the outbreak of hostilities.
Leading entities, including IndiGo, the Air India group, and Akasa Air, have augmented fuel surcharges to mitigate losses, ranging from modest increments on domestic tickets to substantial levies on long-haul international sectors, and internal sources suggest that further fiscal revisions are inevitable should global valuations remain elevated.
However, industry executives caution that aggressive fare increases risk triggering demand destruction, particularly among price-sensitive travellers, thereby compelling airlines to withdraw services on underperforming routes.
The global price shock has been compounded by the closure of critical maritime corridors such as the Strait of Hormuz, which has constricted supply flows and amplified speculative pressures in crude and refined product markets.
Despite the escalation, India’s domestic supply position remains relatively stable due to surplus jet fuel production, and the imposition of an export duty aimed at discouraging outbound shipments is expected to safeguard availability.