Akasa Air Adds Fuel Surcharge of Up to ₹1,300 as West Asia War Sends ATF Prices Soaring

Indian airline Akasa Air has announced a fare hike and introduced a fuel surcharge ranging from ₹199 to ₹1,300 on domestic and international flights, effective from March 15. A spokesperson cited a “significant increase in the price of aviation turbine fuel, driven by evolving geopolitical developments” in West Asia, amid the ongoing conflict between Iran and the US-Israel bloc. The surcharge will be applied per sector and will vary depending on the duration of the flight, and it will not apply to bookings made before 00:01 hrs on March 15.

The move comes as nearly all leading Indian carriers, including IndiGo, Air India, and SpiceJet, have implemented or raised fuel surcharges in response to soaring aviation turbine fuel (ATF) prices. ATF, which accounts for roughly 40% of an airline’s operating costs, has experienced a sharp increase since early March 2026 due to regional supply disruptions caused by the West Asia conflict.

Akasa Air, which commands about 5% of India’s aviation market and operates around two dozen domestic destinations alongside international routes to the Middle East, said the surcharge will be reviewed periodically depending on market conditions. Other carriers have also introduced similar sector-based charges: IndiGo’s domestic and subcontinent flights now attract ₹425 per sector, rising to ₹2,300 for Europe, while Air India has phased surcharges for domestic, West Asian, Southeast Asian, and long-haul routes, with further adjustments planned for markets in the Far East.

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The surge in fares is being driven not only by higher fuel costs but also by operational challenges. Many airlines are avoiding West Asian and adjacent airspace due to security risks, which forces flights onto longer, more expensive routes. Global carriers have reacted similarly, with Cathay Pacific, for instance, planning to double its passenger fuel surcharge for long-haul flights to Hong Kong to HK$1,164 starting March 18.

Industry experts note that without government intervention, such as reducing excise duties and VAT on jet fuel, airlines may continue to pass on rising costs to passengers. SpiceJet founder Ajay Singh warned that even oil prices around $90 per barrel are becoming unsustainable, leaving carriers with little choice but to impose additional surcharges to maintain operational viability.

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