Escalating tensions involving Iran and the broader Middle East are sending ripples across the global aviation industry. Crude oil and jet fuel prices have surged dramatically, forcing airlines worldwide to raise ticket fares and impose new fuel surcharges. In India, the impact is further amplified by high excise duty and VAT on ATF in major metro cities such as Delhi and Mumbai. In response to this, Air India has introduced a revised fuel surcharge effective March 2026 on several international routes, including flights to the USA, the UK, and Asia.
Air India raises fuel surcharge on International Flights
Hit by the jet fuel price hike, Air India increased fuel surcharge for both domestic and international flights. Come 18 March 2026, Air India flight tickets to USA and Australia will cost more $50 per passenger due to the fuel surcharge increase from $150 to $200, in addition to a usual fare hike on account of the changing demand-supply dynamics. Effective 12 March, domestic fares of Air India and its subsidiaries include Rs 399 as fuel surcharge per ticket.
Cathay Pacific increases fuel surcharge
Another popular Asian airline operating flights between USA and India bypassing the Middle East airspace, Cathay Pacific has doubled the fuel surcharge for long-haul service. Cathay Pacific’s new fuel surcharge, USD149 (doubled from US$ 73), will apply to tickets issued on or after 18 March. The aviation fuel cost that has roughly doubled amid the soaring crude oil prices since the outbreak of conflicts in West Asia, is a major driver for the fuel surcharge increase.
US airlines to respond to soaring fuel prices
US airlines are feeling the heat of a sharp rise in jet fuel costs, but they are yet to react to it. United Airlines’ CEO Scott Kirby is keeping a close watch on the Middle East war developments and said that UA flight ticket prices could soar in the coming days if the global fuel supply challenges further drive up the aviation turbine fuel price per barrel. Delta Airlines’ spokesperson echoed the same thoughts referring to the evolving situation in the Gulf region.
Japan Airlines
Of the Asian airlines for safe US-India travel routes, Japan Airlines thinks it is too early to respond to the fuel price surge. JAL already has fuel surcharge as a fare component. As of now, Japan Airlines is not looking to revise the fuel surcharge before 1 April 2026. However, nothing can be said surely given unprecedented volatility of the geopolitical crisis.
Is this the right time to book flight tickets
The history of international airfares in the aftermath of a global crisis like COVID-19 signals that this is the right time to book flight tickets from USA to India for your summer travel before airlines’ new fuel surcharge takes effect this month. When countries gradually reopened doors and travel rebounded after the COVID-19 pandemic, airlines increased fares manifold to recuperate their overwhelming losses to some extent. If the ongoing geopolitical conflict prolongs jet fuel price hikes, airline ticket prices will further burn holes into your pocket.
