Airlines Hike International Fares 10-15% as Jet Fuel Prices Double

If you are planning an international trip this summer, brace yourself: airlines are hiking international airfares by 10-15% starting April 2026. The reason? Jet fuel prices have nearly doubled since the Iran conflict began, and airlines can no longer absorb the cost.

Air India, IndiGo, Vistara, and SpiceJet have all filed revised fare structures with the DGCA. Here is what is changing, why, and how you can still find affordable flights.

Why Are Airfares Going Up?

Jet Fuel Is the Biggest Cost for Airlines

Aviation Turbine Fuel (ATF) accounts for 35-40% of an airline's operating cost — it is the single largest expense. When oil prices spike, airlines have two choices: absorb the cost and lose money, or raise fares. After months of absorbing losses, they are choosing the latter.

Metric	December 2025	March 2026	Change
Crude oil (Brent)	$74/barrel	$88-120/barrel	+19% to +62%
ATF price (Delhi)	₹88,000/kl	₹1,32,000/kl	+50%
ATF price (Mumbai)	₹91,000/kl	₹1,38,000/kl	+52%

India's ATF prices are among the highest in the world because of state-level taxes (VAT ranges from 1% to 30% depending on the state). Airlines have been lobbying for years to bring ATF under GST — which would standardise and likely reduce the tax — but that has not happened yet.

Longer Flight Routes Are Adding Cost

Several international routes from India now require longer flight paths to avoid conflict zones near Iran and the Strait of Hormuz. Flights to Europe, the Middle East, and Central Asia are burning 8-15% more fuel due to diversions. This directly adds to operating costs.

Insurance and Overflight Charges

Aviation insurance premiums for airlines flying near conflict zones have risen sharply. Additionally, overflight charges (fees paid to countries whose airspace you fly through) have increased as airlines route through alternative corridors via Turkey, Egypt, or Central Asian airspace.

How Much More Will You Pay?

Route	Current Economy Fare (approx.)	Expected Fare (April 2026)	Increase
Delhi → Dubai	₹15,000 – ₹20,000	₹17,000 – ₹23,000	+₹2,000 – ₹3,000
Mumbai → London	₹38,000 – ₹50,000	₹44,000 – ₹58,000	+₹6,000 – ₹8,000
Delhi → Singapore	₹14,000 – ₹22,000	₹16,000 – ₹25,000	+₹2,000 – ₹3,000
Bangalore → US (West Coast)	₹55,000 – ₹80,000	₹63,000 – ₹92,000	+₹8,000 – ₹12,000
Delhi → Bangkok	₹12,000 – ₹18,000	₹13,500 – ₹20,000	+₹1,500 – ₹2,000

Domestic fares are also under pressure but are regulated by the DGCA's fare bands. Expect a 5-8% increase on popular routes like Delhi-Mumbai, Bangalore-Delhi, and Mumbai-Goa.

What About Domestic Flights?

The DGCA sets minimum and maximum fare limits for domestic routes. Airlines cannot raise domestic fares beyond the ceiling without regulatory approval. However:

• Budget fares will become scarcer — airlines will reduce the number of seats available at the lowest fare buckets
• Last-minute bookings will cost more — dynamic pricing means fewer cheap seats as departure date approaches
• Fuel surcharges may return — some airlines are considering adding a separate fuel surcharge component to domestic tickets

Which Airlines Are Affected?

All airlines operating from India are affected, but the impact varies:

• IndiGo: Already dealing with a CEO resignation and December operational crisis. International expansion plans may slow down. Domestic routes will see moderate fare increases.
• Air India: Full-service carrier with higher base fares. Long-haul routes to US, UK, and Europe will see the steepest increases (₹8,000-15,000 on premium economy).
• Vistara (merging with Air India): The merger timeline may be affected as both carriers struggle with fuel costs.
• SpiceJet: Already financially stressed. May cut unprofitable routes rather than raise fares.
• International carriers (Emirates, Singapore Airlines, etc.): Also raising fares but have better fuel hedging — their increases may be smaller (5-10%).

How to Save on Flights Despite the Hike

1. Book 6-8 Weeks in Advance

The sweet spot for international flight bookings is 45-60 days before departure. Booking too early or too late costs more. Airlines release cheaper fare buckets first and gradually increase prices as seats fill up.

2. Be Flexible with Dates

Flying on Tuesday, Wednesday, or Saturday is typically 10-20% cheaper than Friday or Sunday. Use Google Flights' date grid feature to find the cheapest day to fly.

3. Consider Connecting Flights

A Delhi-Dubai-London routing can be ₹8,000-12,000 cheaper than a direct Delhi-London flight. The trade-off is 3-5 hours of extra travel time, but the savings are significant.

4. Use Credit Card Travel Points

If you have been accumulating credit card reward points, this is a good time to redeem them. Most travel credit cards offer 2-5% value on flight bookings. A card with 50,000 points could save you ₹5,000-10,000 on an international ticket.

5. Set Fare Alerts

Use Google Flights, Skyscanner, or Ixigo to set fare alerts for your preferred routes. Airlines frequently run flash sales — even during high-fuel periods — to fill seats on specific dates.

6. Budget for the Increase

If you have a summer vacation planned, factor in the higher airfare when calculating your trip budget. A family of four flying internationally could pay ₹12,000-40,000 more than last year. Adjust your savings plan accordingly and consider whether the trip is worth the premium — or if a domestic holiday might be a better value this year.

What About Aviation Stocks?

For investors, the situation is mixed:

• Higher fares help revenue — but only if passenger demand holds up. If travellers cut back due to expensive tickets, airlines fill fewer seats.
• Fuel costs are rising faster than fares — even with a 15% fare hike, airlines may see thinner margins because ATF prices have risen 50%.
• IndiGo remains the best-positioned Indian airline due to its 62% domestic market share, but its leadership vacuum adds uncertainty.

The Bottom Line

International airfares from India are rising 10-15% from April 2026 due to jet fuel prices nearly doubling since the Iran conflict. Domestic fares will also see moderate increases. The best strategy is to book early, stay flexible with dates, use credit card points, and budget for higher travel costs this summer.

The fare hikes are unlikely to reverse until oil prices stabilise — and that depends on how the Iran conflict evolves. Plan your travel accordingly.

Disclaimer: This article is for informational purposes only. Airfare prices are dynamic and vary by airline, route, and booking date. The figures mentioned are indicative estimates based on publicly available data as of March 2026.