India's airlines face soaring fuel costs and likely higher airfares

Business Mar 30, 2026

Planning a trip this summer? Brace yourself: airfares are likely to go up as Indian airlines struggle with soaring aviation fuel prices, thanks to the ongoing Iran conflict.
Even though travel demand is high, airlines are keeping flight numbers almost flat, with just a 3% increase over last year.
IndiGo is actually cutting back slightly on flights, while Air India is adding a few more but staying cautious.

Surcharges not covering airline expenses

Fuel now eats up about 30% of airline costs, and prices just keep climbing.
Despite adding fuel surcharges, carriers like IndiGo and Air India still aren't covering their expenses.
There's even talk of grounding planes if things get worse after April 1, which could mean fewer flight options during peak summer travel.