Due to rising jet fuel prices, airlines may increase air fares in the coming days.
In the last two weeks, there has been an increase of 8 percent in the prices of petrol and diesel. It is clear that the burden of crude oil, which has become expensive due to the Middle East war, has now started falling on the pockets of common people. According to the recent report of Jefferies, petroleum companies are still incurring a loss of Rs 7 to 8. This means that further increase in fuel prices may be seen in the coming days. This was the talk of the road. Where the burden on the pockets of common people has started.
Now it’s the turn of the sky. Wherever there is a possibility of impacting the pockets of common people. Unlike petrol and diesel, the price of jet fuel does not directly affect the pockets of common people. Its effect is visible on the airlines. Due to increase in the prices of jet fuel, the operational costs of airlines increase. After that, if the airlines want, they increase the prices of air tickets.
Now some similar signs are visible. Petroleum companies had definitely increased the prices of jet fuel. Even fuel prices for international flights were doubled. After which there was an increase in the operational costs of all the airlines companies. Now, due to the Middle East crisis and increase in fuel prices, major airlines of the country are going to cut down their operations or rather, their flights.
This cut will not be small, it will be big. Indications have also been received from Air India and Indigo. If experts are to be believed, air fares may also see a significant increase in the coming days. Let us also tell you what kind of indications have been given by the airlines companies. Also, how much impact can be seen on the pockets of common people in the form of air fare.
Indications from Air India
According to sources, Air India has temporarily reduced its domestic flights by 22 percent. The biggest reason for this is that the airline is running in huge losses due to the impact of fuel prices. The decision comes two weeks after the Tata Group-owned airline announced a 27 percent cut in international flights. This cut was made due to airspace restrictions and expensive jet fuel, which had increased operational costs for foreign sectors. Air India operates about 4,400 flights every week. Of these, about 3,600 are domestic and 800 international flights.
Air India said in a statement on Wednesday that in continuation of the previously announced adjustments in select international flights between June and August 2026, we have also temporarily rationalized operations on some domestic routes during the same period, reducing the number of flights on select routes. Sources said that domestic flights will be reduced by 20-22 percent. Based on approximately 3,600 weekly domestic flights, the 22 per cent cut would reduce weekly services by more than 790.
The airline said that these adjustments have been made due to the continued impact of high fuel prices on overall operations. The statement said that Air India will continue to closely monitor the demand and operation status, so that the number of flights can be restored once the conditions become normal. On May 13, Air India had announced reduction in international flights during the June–August period. The airline will cut around 100 overseas flights and temporarily suspend services on seven routes – including the Delhi-Chicago route. As a result, its international capacity will reduce by 27 percent.
The airline will temporarily suspend services on Delhi-Chicago, Delhi-New York, Mumbai-New York, Delhi-Shanghai, Chennai-Singapore, Mumbai-Dhaka and Delhi-Male routes till August. Announcing the rationalization of services, Air India had also said on May 13 that if the extraordinary operating conditions persist, it may make further adjustments to its network.
According to data disclosed by Singapore Airlines Group in its 2025-26 annual financial report released on May 14, Air India suffered a loss of more than SGD 3.56 billion (more than Rs 26,700 crore) in the financial year ending March 2026. In the financial year ending March 2026, the net profit of Singapore Airlines Group fell by 57 percent to SGD 1.184 billion (about Rs 8,900 crore). The main reason for this was the lack of one-time accounting profit related to Vistara merger last year and the loss suffered by Air India. This group has 25.1 percent stake in Air India, and the remaining stake is with Tata.
Indigo will also make cuts
Industry sources said that IndiGo has also reduced its domestic capacity by about 5 percent during the July-September quarter as compared to the same period last year. Sources further said that this step has been taken due to low demand as travelers are cutting down on their non-essential expenses after the summer holiday rush, which is traditionally a slow travel season. IndiGo currently operates around 2,200 flights daily, and a 5 per cent cut would mean a reduction of around 110 flights. With airfares already almost doubling on many routes, this reduction in capacity is expected to further restrict supply, giving airlines more room to raise fares.
40 percent share of fuel in operational cost
The air of airlines is not tight just like that. The biggest reason for this is the prices of jet fuel. According to the report, fuel accounts for 40 percent of the total operational cost of airlines. This means that fuel prices are very important for airlines. There is pressure on companies to keep air fares low. Also, due to rising fuel prices, pressure on companies is continuously increasing. Due to which the pressure on companies to increase air fares has increased.
In the coming days, there may be an increase in both domestic and international air fares. At present, the price of jet fuel for domestic flights in Delhi is Rs 1,04,927 per kilolitre. The last time it increased was on April 1. Whereas the price of jet fuel for international flights was increased by more than 5 percent on May 1. According to government oil companies, ATF prices in Delhi have been increased by US $ 76.55 per kiloliter, or 5.33 percent, to US $ 1511.86 per kiloliter.
Why are fuel prices increasing?
The ongoing conflict in Iran has disrupted global energy markets and driven up crude oil prices significantly over the past few months. Higher crude oil prices have a direct impact on aviation turbine fuel (ATF) prices, increasing the operating expenses of airlines around the world. Indian airlines are particularly sensitive to this situation, as India imports most of its crude oil needs. The weakening rupee has further increased the cost burden on airlines.
Surcharge was increased recently
Recently many airlines have increased their surcharges. If we talk about Air India, the airline has recently implemented a new system of surcharge based on distance. Passengers will have to pay an additional amount of Rs 299 for flights covering a distance of less than 500 kilometers and Rs 899 for routes covering a distance of more than 2,000 kilometers. If we take international flights then its impact is much greater. Due to the huge surge in global crude oil prices, airlines have increased international surcharge from Rs 2,200 to Rs 26,000.
