Airfares Rise As Indian, Pakistani Airlines Introduce And Hike Fuel Surcharges

(MENAFN- Khaleej Times)

Oil was trading above $100 per barrel on Friday due to the ongoing military conflict involving the US-Israel-Iran. Fuel accounts for a large chunk of airlines’ costs

By: Waheed Abbas

Indian and Pakistani airlines have introduced and increased fuel surcharges on domestic and international flights due to increase in oil prices amid regional military conflict.

This will result in airfares between the UAE, GCC and two South Asian countries.

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Oil was trading above $100 per barrel on Friday due to ongoing military conflict involving the US-Israel-Iran. Fuel accounts for a large chunk of airlines’ costs.

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Effective from March 14, 2026, IndiGo on Friday introduced fuel charges on domestic and international routes.

India’s largest carrier announced additional fuel charge of Rs425 on domestic and the Indian Subcontinent routes; Rs 900 on the Middle East; Rs1,800 on Southeast Asia and China; Rs1,800 on Africa and West Asia; and Rs2,300 on European routes.

The Indian carrier said that fuel charges will include all new bookings.

“This measure is taken due to the significant surge in fuel prices following the ongoing geopolitical issues in the Middle East,” the airline noted.

“While offsetting the entire impact of this fuel price surge requires a very substantial adjustment to fares, IndiGo has introduced a relatively smaller amount as a fuel charge keeping in mind the consequential burden on customers,” the airline added.

With its fleet of 400-plus aircraft, the airline operates around 2,200-plus daily flights, connecting over 95 domestic and over 40 international destinations. It handled 124 million customers in 2025.

Meanwhile, Pakistani airlines have also increased fuel surcharges due to the ongoing military conflict in the region.

Abdullah Khan, Pakistan International Airlines’ (PIA) spokesman, told Reuters that fuel costs have increased by 34 per cent due to the Middle East conflict.

Therefore, he said the national carrier increased fuel surcharges on domestic flights by $20 (Dh73.4) and up to $100 (Dh367) on international flights.

Pakistani and Indian airlines have cancelled hundreds of flights since Israel-Iran began on February 28, 2026.

The airlines are operating at reduced capacity due to airspace restrictions in Iran and Gulf countries.

Air India group has also announced a phased expansion of a fuel surcharge on its domestic and international routes.

It maintained fuel surcharge on domestic routes at Rs399 and $10 at West Asia/Middle East routes.

But increased fuel surcharge on Southeast Asia and Africa by $20 and $30 to $60 and $90, respectively.

To European destinations, it increased fuel surcharge by $25 to $125. To North America and Australia, the airline hiked surcharge by $50 to $200.

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