The ongoing conflict in West Asia, particularly the Israel-US war on Iran, has significantly impacted the global aviation industry. Airlines worldwide, including Indian carriers, have responded to the surging jet fuel prices by increasing ticket fares and introducing fuel surcharges. Passengers traveling between India and destinations such as the United States, London, and Frankfurt now face fares nearly double their pre-conflict prices, driven by higher operational costs and rerouted flights avoiding conflict zones.
In India, the rise in aviation turbine fuel (ATF) prices—by approximately 5-6%—has been compounded by the country's tax structure, which includes central excise and state VAT, often reaching 20-25%. These factors have resulted in carriers like Air India and IndiGo implementing new surcharges, varying from a few hundred to over two thousand rupees per ticket, depending on the route. This escalation in costs has led to airlines adjusting their pricing strategies, and many routes are experiencing cancellations, especially those connecting to the Middle East, due to security concerns.
Flight rerouting and fare hikes
The conflict has also prompted airlines to reroute flights to avoid restricted West Asian airspace. Consequently, routes such as Bengaluru-New York, Bengaluru-London, and Bengaluru-Frankfurt are now lengthened, increasing fuel consumption and operational expenses. International carriers, including Air France-KLM and Thai Airways, have announced fare increases to reflect higher fuel costs, with some long-haul routes seeing prices rise by approximately 50 euros or 10-15%.
"The war has led to a dramatic spike in fuel prices, forcing airlines to pass these costs onto travelers," said industry experts.
Travel to the Middle East has sharply declined, with many flights canceled or disrupted. For example, Hyderabad experienced the cancellation of 29 flights to Gulf countries, including routes to Dubai and Muscat, causing fares to surge from the pre-war Rs 8,000–15,000 to Rs 40,000–50,000. Many travelers are now facing longer layovers and circuitous routes to avoid conflict zones, which has further increased travel costs and durations.
The overall effect has been a substantial rise in international and domestic airfares, logistical challenges, and service reductions, highlighting the severe impact of geopolitical tensions on the aviation sector.
