Travellers flying between the UAE and India may soon face higher ticket prices after major Indian airlines announced new fuel surcharges following a sharp spike in aviation fuel costs linked to geopolitical tensions in the Middle East.
Air India Group and IndiGo, two of the largest carriers operating extensive routes between India and the Gulf, have begun introducing additional charges on domestic and international flights.
The airlines say the move is necessary to offset the steep rise in aviation turbine fuel (ATF), one of the biggest expenses in airline operations.
For passengers travelling on the heavily trafficked UAE–India corridor, the new charges could gradually translate into higher ticket prices, especially for new bookings made in the coming weeks.
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The development comes at a time when aviation fuel prices have surged globally. Since early March 2026, ATF, which accounts for nearly 40 per cent of an airline’s operating costs, has seen a sharp escalation due to supply disruptions linked to geopolitical developments in the Gulf region.
Industry analysts note that airlines often pass part of these rising costs to passengers through surcharges or fare adjustments. With millions of travellers flying annually between cities such as Dubai, Abu Dhabi and Sharjah and Indian hubs like Delhi, Mumbai, Kochi and Hyderabad, the impact could be felt across one of the world’s busiest international travel corridors.
Air India announces phased fuel surcharge
Air India Group said on March 10 that it will implement a phased expansion of fuel surcharges across domestic and international routes.
The airline said the measure was necessitated by the sharp increase in jet fuel prices, which has significantly raised operating costs for carriers.
In India, the financial pressure is further compounded by high excise duty and value-added tax (VAT) on aviation fuel in major metro cities such as Delhi and Mumbai, magnifying the cost burden on airlines.
The airline said the surcharge will be implemented in three phases and will apply to travel on all flights, including those operated by Air India Express.
Phase 1 (For all new bookings made from 0001 hours India Standard Time on March 12, 2026):
| Region | Current fuel surcharge | Increase in fuel surcharge | Revised fuel surcharge |
| Domestic India | Not applied | INR399 | INR399 |
| SAARC | Not applied | INR399 | INR399 |
| West Asia / Middle East | Not applied | $10 | $10 |
| Southeast Asia2 | $40 | $20 | $60 |
| Africa | $60 | $30 | $90 |
Fuel surcharge is currently not applied on flights to/from Singapore but shall apply from Phase 1
Phase 2 (for all new bookings made from 0001 hours India Standard Time on 18 March 2026):
| Region | Current fuel surcharge | Increase in fuel surcharge | Revised fuel surcharge |
| Europe | $100 | $25 | $125 |
| North America | $150 | $50 | $200 |
| Australia | $150 | $50 | $200 |
Phase 3 will apply to and from Far East markets, namely Hong Kong, Japan, and South Korea, which will be announced in due course.
The airline clarified that bookings already made before the specified dates will not attract the new surcharge unless customers change their itinerary or travel dates, which would require recalculating the fare.
“Air India regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control,” the airline said in a statement.
The airline added that without such surcharges, some flights might not be able to cover operating costs and could face cancellation.
IndiGo introduces fuel charge
Budget carrier IndiGo has also announced a new “fuel charge” that will apply to both domestic and international routes from March 14, the official statement posted on the airline’s X account said.
The airline said the decision was prompted by a steep surge in jet fuel prices linked to ongoing geopolitical issues in the Middle East.
According to the International Air Transport Association’s jet fuel monitor, prices in the region have increased by more than 85 per cent.
“Aviation Turbine Fuel represents a significant share of airlines’ operating cost. This sudden and steep increase will have a material impact on all airlines’ costs and network, including IndiGo’s,” the airline said.
While the airline acknowledged that fully offsetting the cost surge would require a substantial fare increase, it said the fuel charge introduced was comparatively smaller to reduce the burden on customers.
Starting March 14, 2026, 00:01 hrs, overall prices for all new bookings on IndiGo flights will include the following additional Fuel Charge, per sector.
| Routes | Fuel charge (INR) |
| Within domestic india | INR425 |
| Indian subcontinent | INR425 |
| Middle East | INR900 |
| South East Asia and China | INR1800 |
| Africa | INR1800 |
| Europe | INR2300 |
“IndiGo regrets the inconvenience resulting from this additional charge and reiterates that the measure has been driven by a sudden and substantial change in the operating environment,” the airline said.
The airline added that it will continue monitoring the situation and adjust charges when appropriate while maintaining its commitment to affordable and convenient travel.
Impact on UAE–India travel
With both full-service and low-cost airlines introducing fuel surcharges, ticket prices on routes between the UAE and India could face upward pressure in the coming weeks.
Flights between the two countries are among the busiest international connections globally, driven by tourism, business travel and the large Indian expatriate population in the Gulf.
As airlines adjust to volatile fuel prices, passengers booking upcoming travel may notice slightly higher fares, particularly for last-minute bookings or peak travel periods.
For now, airlines say the surcharges will be reviewed periodically depending on how fuel prices evolve, leaving open the possibility that fares could stabilise, or rise further, if fuel costs remain elevated.
