India's domestic, international airfares up 15-44% despite cap on jet fuel price

Indian carriers are increasing fuel surcharges on both domestic and international routes. Air India, for instance, has introduced a distance-based structure, replacing previous flat charge

  • PUBLISHED: Wed 15 Apr 2026, 12:51 PM

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Passengers flying on domestic and international routes in India are paying hefty fares following the US-Israel-Iran war that resulted in sharp spurt in the price of aviation turbine fuel (ATF).

Fares have shot up in the range of 15 to 20 per cent on some domestic routes, but since this is lean travel season (May-June is the peak season for domestic travel in India), fares are unlikely to shoot over the coming weeks.

Fares for last-minute bookings from Delhi to Bengaluru or Thiruvananthapuram, fares are up by about 15 per cent, but for passengers booking a few days in advance, there are no significant hikes.

Cleartrip, a leading online travel agency, revealed that average domestic ticket price shot up from Rs5,850 (Dh235) in April 2025 to Rs8,450 (Dh335) a year later.

Wega India, a travel metasearch engine and app, pointed out that average domestic booking values in India are around Rs10,000 (Dh395) now as against Rs9,000 (Dh355) a year ago, reflecting a 12 per cent rise.

International fares shot up from Rs52,000 (Dh2,050) to almost Rs75,000 (almost Dh3,000) during the same period.

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Worried about the impact on domestic fares, the Indian government earlier this month capped the increase in price of ATF for domestic travel at 8.5 per cent, unlike the 100 per cent jump for international and chartered flights.

Ram Mohan Naidu, India’s civil aviation minister, told the media that the government was keen on preventing sharp fare hikes in the domestic sector and also ease the burden on Indian routes. It would also help the economy by ensuring smooth movement of cargo and maintaining air connectivity for trade and logistics.

Naidu said ATF prices in the country was facing extraordinary pressure because of the Middle East conflict. But the government decision “to implement only a partial and staggered increase of 25 per cent for domestic airlines is both pragmatic and forward-looking, while ensuring that foreign routes bear the full market-aligned price," he noted.

Airlines, however, are increasing fuel surcharges on both domestic and international routes. Air India, for instance, has introduced a distance-based structure, replacing the earlier flat charge.

The airline said that following the government’s decision to cap domestic ATF price hike at 25 per cent, “Air India group is reflecting this calibrated approach, transitioning from a flat domestic surcharge to a distance‑based grid.”

Fuel surcharge for passengers on short-haul flights (of up to 500 km) will be an additional Rs299 (about Dh12); for routes between 501 km and 1,000 km, it is Rs399 (Dh15.75); for flights covering 1,001 km to 1,500 km, the surcharge would be Rs549 (Dh21.7), and those on longer routes (1,501 km to 2,000 km) will have to pay Rs749 (Dh29.6).

Similarly, IndiGo has also revised its fuel charges for domestic flights, ranging from Rs275 (Dh10.85) to Rs950 (Dh37.5), depending on flight distance. The airline said it will monitor developments on fuel prices and adjust surcharges when necessar