Indian air travellers are now feeling the direct financial impact of the West Asia conflict, with Air India and Air India Express announcing a significant increase in fuel surcharges across both domestic and international routes — adding anywhere from Rs 400 to Rs 3,000 to ticket prices depending on the destination, as Aviation Turbine Fuel costs spiral in the wake of the Strait of Hormuz disruption and surging global crude prices.

ATF accounts for approximately 40 percent of an airline's total operating expenses — making it the single largest cost driver in aviation. Since the first week of March 2026, jet fuel prices have risen sharply following the escalation of the Iran-US-Israel conflict, with high excise duty and VAT on ATF in major metros like Delhi and Mumbai compounding the burden further. With no immediate resolution to the West Asia crisis in sight, airlines have concluded that absorbing the cost is no longer viable.

Air India is implementing the revised fuel surcharge in three phases. On domestic routes and flights to SAARC countries, passengers will pay approximately Rs 399 extra per ticket. For international routes, the surcharge increase varies by region — flights to West Asia will attract an additional $10, Southeast Asia $20, and Africa $30. The airline has cautioned that fares may rise further if the geopolitical situation does not improve.

The aviation surcharge hike sits within a wider energy crisis gripping India. With approximately 50 percent of India's oil and gas imports sourced from Gulf countries — and maritime supply routes severely disrupted by the conflict — the cost of energy across the board has climbed steeply. Domestic LPG cylinder prices have already been raised by Rs 60 and commercial cylinders by Rs 115. The government has maintained that there is no shortage and has directed refineries to increase cooking gas production by 10 percent, but the pricing pressure on consumers continues to mount.