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IndiGo adds ‘fuel charge’ on flight ticket prices as oil spikes amid Iran war
IndiGo says it has opted for a smaller fuel charge despite the surge in ATF prices requiring a “substantial adjustment” to base flight ticket prices.
IndiGo will begin levying a fuel charge on all domestic and international flight tickets starting March 14, 2026, citing a "sharp surge" in global aviation turbine fuel (ATF) prices amid an escalating Iran war.
The move by InterGlobe Aviation Ltd. comes as geopolitical tensions in the Middle East have sent energy costs spiralling. According to the IATA Jet Fuel Monitor, fuel prices in the region have skyrocketed by more than 85%.
ATF typically accounts for nearly 40% of an airline's operating expenses. IndiGo said that the "sudden and steep" increase in ATF prices has a material impact on its cost structure.
The new charges are applied per sector and vary based on the destination:
- Domestic & Indian Subcontinent: ₹425
- Middle East: ₹900
- South East Asia & China: ₹1,800
- Africa & West Asia: ₹1,800
- Europe: ₹2,300
IndiGo said it has opted for a smaller fuel charge to the benefit of flyers as fully offsetting the surge in ATF prices would require a “substantial adjustment” to base fares.
The move comes days after Air India and Air India Express announced a phased rollout of a new fuel surcharge on March 10, 2026, noting that without these surcharges, some flights would become economically unviable and might face cancellation.
IndiGo, which operates a fleet of over 400 aircraft and flew 124 million customers in 2025, stated it will continue to monitor the volatile crude oil market and adjust the surcharge as appropriate. The airline remains the region's largest player, currently connecting over 135 destinations globally.
