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Iran US war and West Asia conflict push ATF prices up from April 01, as Ram Mohan Naidu warns of airfare hikes and airlines like Air India and Akasa Air add surcharges.
The air fare may increase from April 01 as ATF prices are expected to rise from new fiscal year due to the rising crude oil prices
Airline passengers might have to face for air fare hike from April 01 as the impact of the Iran-US war is likely to be felt on the aviation sector, which is already suffering from increasing operational costs and thinning profit margins.
Civil Aviation Minister Ram Mohan Naidu, while speaking to the media in Vishakhapatnam, said that the impact of rising global oil prices due to the ongoing West Asia conflict will be felt from April 01. “The ATF prices are decided on the first of every month. The impact might be visible from April 01,” he added.
Aviation Turbine Fuel (ATF) is commonly used in commercial flights, cargo planes and military jets. The rise of ATF prices corresponds to the rise in air tickets and airline costs.
Amid the forewarning of air price hike from April, the government has taken another step to remove airfare caps for domestic flights, enabling flight carriers to increase the ticket prices without prior approval.
Following the IndiGo flight disruption in December 2025, the government had imposed the airfare cap to avoid exponential price surges during the period. It was a temporary measure.
The removal of the temporary cap on domestic airfares allows greater flexibility to flight carriers to decide on the pricing based on demand and costs. It comes on the heels of international routes amid the ongoing Iran-US war.
Air India has announced a hike in fuel surcharge, introducing a phased and tiered increase across both domestic and international routes, as jet fuel prices rise amid escalating geopolitical tensions in the Gulf region.
At the same time, Akasa Air has rolled out a new fuel surcharge on its domestic and international flights for bookings made from 00:01 hrs on March 15, citing a sharp increase in aviation turbine fuel (ATF) costs.
The ongoing conflict in West Asia has disrupted global energy supplies, impacting crude oil and gas movement through critical routes such as the Strait of Hormuz.
March 22, 2026, 09:45 IST
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