Airfares Likely to Rise as IndiGo Faces Cost Pressure Amid Middle East Tensions
Higher fuel prices and airspace disruptions may impact travel demand, warns India’s largest airline.
India’s largest airline, IndiGo, has warned that rising operational costs driven by escalating tensions in the Middle East could lead to higher ticket prices and reduced travel demand in the coming months.
The ongoing conflict involving the United States, Israel, and Iran has significantly impacted global aviation. Increasing jet fuel prices and restricted airspace in parts of the Middle East are creating challenges for airlines worldwide. For Indian carriers, this situation is particularly concerning, as fuel expenses make up nearly 40% of their total operating costs.
In a statement, an IndiGo spokesperson said the airline plans to run around 2,000 domestic flights daily under its summer schedule starting in April. While international operations were initially planned at levels similar to the winter schedule, the airline noted that actual capacity will depend on how the situation in the Middle East develops.
The spokesperson highlighted that operating costs are rising sharply, not just due to fuel prices but also because of foreign exchange fluctuations and an already increasing cost environment.
Although IndiGo’s planned domestic schedule is close to last year’s summer levels, it remains below the current winter schedule. The winter operations had already been reduced earlier following disruptions in December.
To offset rising costs, IndiGo has introduced a fuel surcharge ranging from ₹425 to ₹2,300 on both domestic and international tickets since March 14. However, the airline acknowledged that such fare increases could impact passenger demand.
Other airlines, including Air India, Air India Express, and Akasa Air, have also implemented similar surcharges.
Apart from fuel costs, airlines are also dealing with sudden airspace closures and higher insurance premiums, adding further pressure on their operations.
IndiGo said it will continue to closely monitor the evolving situation and adjust its flight capacity accordingly for both domestic and international routes.
