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Jet fuel is the biggest expense for airlines. Its share in total operating expenses is 30% to 40%.
Flights of the country’s largest airline company Indigo will become expensive from Thursday. The airline has imposed extra fuel charge up to a maximum of ₹950 on domestic flights and up to ₹10,000 on international flights. The new prices will be applicable from 12:01 am on April 2.
Indigo has decided to increase fuel surcharge on domestic and international flights for the second time in 18 days. Earlier, the company had also increased the fares on March 14.
According to the company, this decision has been taken due to the increase in the prices of Aviation Turbine Fuel (ATF) i.e. jet fuel. According to the International Air Transport Association (IATA), fuel prices have increased by more than 130% in the last one month.
Indigo: New fuel charge for domestic routes
| Route/Distance (in Km) | Revised Fuel Charge (in ₹) |
| 0 – 500 Km | ₹ 275 |
| 501 – 1,000 Km | ₹ 400 |
| 1001 – 1,500 Km | ₹ 600 |
| 1501 – 2,000 Km | ₹ 800 |
| More than 2,000 Km | ₹ 950 |
Indigo: New fuel charge for international routes
| Sector | distance | Revised Fuel Charges (in ₹) |
| Indian subcontinent | up to 500 km | ₹ 900 |
| more than 500 km | ₹ 2,500 | |
| GCC and Middle East | Up to 2,000 Km | ₹ 3,000 |
| More than 2,000 Km | ₹ 5,000 | |
| Southeast Asia and China | Up to 2,000 Km | ₹ 3,500 |
| More than 2,000 Km | ₹ 5,000 | |
| Africa | all distances | ₹ 5,000 |
| Greece and Türkiye | all distances | ₹ 7,500 |
| UK and Europe (except Greece and Türkiye) | all distances | ₹ 10,000 |
Charge will be based on distance
The Civil Aviation Ministry has stopped airlines from passing the entire burden on to customers. Currently, the government has allowed only 25% increase in fares for domestic flights.
According to IndiGo, they have ‘re-calibrated’ the fuel charge according to distance, meaning the longer your journey, the higher the fuel charge for the ticket.
Approval of additional duty of ₹ 50 per liter on fuel
Increase in taxes is also a major reason for increasing costs. On Wednesday, a proposal to impose additional excise duty on aviation fuel (ATF) was passed in the Rajya Sabha.
Under this proposal, the notification of 26 March 2026 has been approved. Now by making changes in the Finance Act 2002, additional excise duty of ₹ 50 per liter will be imposed on ATF.
Jet fuel is the biggest expense for airlines.
Due to rising jet fuel prices, airlines around the world have not only increased ticket prices but have also withdrawn their future financial projections. Jet fuel is the biggest expense for airlines. Its share in total operating expenses is 30% to 40%.
This sudden change in oil prices has spoiled the budget of the airlines. Big companies like Air New Zealand and Qantas have also made it clear that they will pass the burden of increased expenses on to the passengers.
These airlines also increased fares across the world
Air New Zealand: Air New Zealand has announced a big increase in its ticket prices on Tuesday. The company has increased the one-way fare for domestic flights by 10 New Zealand dollars. An increase of $20 has been made for short-haul international flights and $90 for long-haul flights. The company has also withdrawn its earnings estimates for 2026 due to high volatility in the market.
Hong Kong Airlines: Hong Kong Airlines is going to increase fuel surcharge by up to 35.2% from Thursday. For countries like Maldives, Bangladesh and Nepal, this surcharge has been increased from 284 Hong Kong dollars to 384 Hong Kong dollars. Cathay Pacific has started additional flights to London and Zurich in March, so that passengers on the affected routes can get options. The company is currently reviewing the fuel surcharge every month.
Qantas and SAS: Australia’s flag carrier Qantas Airways has increased fares on its international routes. However, the company says that flights to Europe are running more than 90% full, so they are considering increasing capacity in the coming months. SAS (Scandinavian Airlines), the major airline of Nordic countries i.e. Northern Europe, has also implemented temporary price adjustment in view of the rising costs.
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At the same time, surcharge will also be levied on Air India international flights. Bloomberg also informed in its report that Indian Airlines has increased the fares of international flights by about 15%.
According to the report, due to the increasing war between America-Israel and Iran and the impact of the Hormuz Route, there is a continuous increase in the prices of crude oil and jet fuel. Whose impact is also visible on the global aviation industry. Read the full news…
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