India’s largest airline, IndiGo, will start adding a fuel surcharge to all domestic and international flight tickets from March 14, 2026. The airline’s parent company, InterGlobe Aviation Ltd., said the decision was taken because of a “sharp surge” in global aviation turbine fuel (ATF) prices. The rise in fuel costs is linked to the escalating conflict involving Iran, which has pushed energy prices higher across global markets.

Rising Fuel Prices Behind the Decision

Growing geopolitical tensions in the Middle East have caused a dramatic increase in energy costs. According to data from the International Air Transport Association Jet Fuel Monitor, jet fuel prices in the region have jumped by more than 85 percent.

Aviation turbine fuel is one of the biggest expenses for airlines. It usually accounts for nearly 40 percent of an airline’s total operating costs. IndiGo said the “sudden and steep” increase in ATF prices has significantly affected its overall cost structure.

New Fuel Charges Based on Destination

The airline will apply the fuel surcharge on a per-sector basis. The amount will vary depending on the destination. The new charges are:

• Domestic & Indian Subcontinent: ₹425

• Middle East: ₹900

• South East Asia & China: ₹1,800

• Africa & West Asia: ₹1,800

• Europe: ₹2,300

Passengers will see these additional charges included in the ticket price depending on the route they choose.

Airline Says Charge Is Limited to Reduce Burden on Flyers

IndiGo said it deliberately kept the surcharge relatively small so that passengers do not face a major increase in ticket prices. The airline explained that if it tried to fully cover the sharp rise in fuel prices, it would need to make a “substantial adjustment” to base fares. By introducing a limited fuel surcharge instead, the airline hopes to reduce the financial burden on travellers.

Other Indian Airlines Also Adding Fuel Surcharge

IndiGo’s decision follows similar steps by other airlines. Earlier this week, Air India and Air India Express announced that they would introduce a phased fuel surcharge starting March 10, 2026.

Both airlines said rising fuel prices were making some flights difficult to operate profitably. They warned that without such surcharges, certain routes could become economically unviable and might even face cancellation.

IndiGo Continues to Monitor Oil Market

IndiGo said it will keep monitoring global crude oil prices and the aviation fuel market. The airline added that the surcharge could be revised depending on how the situation develops.

The carrier currently operates a fleet of more than 400 aircraft. In 2025, it flew around 124 million passengers, making it one of t he busiest airlines in the region. IndiGo also remains the largest airline in the region in terms of network reach. It currently connects more than 135 destinations worldwide.