When Vishwas Reddy, a Bengaluru-based businessman, first checked flights to Kazakhstan in January, the fare was a reasonable ₹25,000. By late February, as war broke out across West Asia, it had nearly doubled to ₹45,000. Within days of the conflict escalating, it climbed to ₹75,000—a threefold jump in under two months.
“I postponed my trip because it was not safe and prices kept increasing,” Reddy said. He eventually travelled on 21 March, reasoning that Central Asia was far enough from the epicentre. But the episode has changed how he approaches work and leisure travel. Short vacations clubbed with business trips are now indefinitely on hold.
He is not alone.
Rising airfares are hitting not just business travel but also leisure demand—typically expected to pick up after the exam season ends.
Rikant Pittie, CEO and co-founder of EaseMyTrip, said the platform is seeing domestic price increases of around 5–10%, especially on high-traffic leisure routes and for last-minute bookings. Internationally, the jump is sharper: short-haul routes are up 20–30%, as travellers pivot to stable destinations and airlines adjust capacity amid operational constraints.
Triple whammy
The aviation industry is facing pressure from three fronts simultaneously.
First, aviation turbine fuel (ATF) prices have surged. The International Air Transport Association’s Jet Fuel Monitor recorded an increase of over 85%.
Second, restricted airspace across conflict zones is forcing airlines to reroute flights, adding flying time and increasing fuel burn.
Third, passenger demand on certain international corridors is softening as ticket prices rise and travellers reassess plans.
Inevitably, a significant part of this cost is being passed on through fuel surcharges, fewer route options, and higher base fares.
Fuel surcharges
IndiGo, India’s largest carrier, introduced a fuel surcharge across all domestic and international routes from 14 March. The additional charge ranges from ₹425 on domestic and Indian subcontinent routes to ₹900 for Southeast Asia, China and Africa, rising to ₹2,300 for Europe.
Akasa Air followed with a surcharge ranging from ₹199 to ₹1,300 depending on flight duration.
Air India adopted a phased approach. From 12 March, it added ₹399 on domestic and subcontinent routes; $10 (about ₹950) to West Asia; $20 (about ₹1,900) to Southeast Asia; and $30 (about ₹2,850) to Africa.
From 18 March, a second phase added $25 (about ₹2,350) for Europe and $50 ( ₹4,750) each for North America and Australia — on top of the existing $150 surcharge, taking the total to $200 for those two markets. For Europe, a $100 surcharge was already in place before the notification.
A third phase covering Far East markets including Hong Kong, Japan and South Korea is yet to be announced, the airline said.
Fare caps lifted
Beyond fuel surcharges, domestic base fares are now fully market-driven after the civil aviation ministry removed fare caps from 23 March.
These caps, imposed during the IndiGo crisis in December, had limited one-way economy tickets to ₹7,500 for routes up to 500 km, ₹15,000 for 1,000–1,500 km routes including Delhi–Mumbai, and ₹18,000 for longer sectors.
With the caps gone, fares are now dictated purely by demand and supply.
Fewer flights
Thousands of flights operated by Indian carriers, especially on Gulf routes, have been cancelled.
Chetan Gowdha, a UAE-based businessman who frequently travels between Dubai and Bengaluru, said frequencies have reduced noticeably. “Earlier there were four flights from Bengaluru to Dubai in a day, but that has reduced,” he said.
On his most recent return to Dubai, he paid ₹25,000–30,000 more than usual — a steep premium on what used to be a routine expense.
Smart planning
For those who must travel, experts advise early booking, flexibility and maintaining a financial buffer.
Jimeet Ved, founder of travel platform outofofficedaku, suggests avoiding airlines transiting through Gulf countries directly affected by the conflict. Routing via Turkey or Oman—or choosing direct flights—can reduce risk and uncertainty.
He also recommends opting for “cancel for any reason” add-ons offered by many online travel platforms at the time of booking. Typically costing under ₹1,000 for both domestic and international flights, these allow cancellations and free date changes. A date-change-only option costs around ₹300.
This differs from standard travel insurance, which usually does not cover war-related changes.
Meet Kapadia, head of travel insurance business at Policybazaar.com, said over 90% of policies cover acts of god such as illness, injury, death in the family, court summons or natural disasters—but not war-related disruptions.
The “cancel for any reason” feature covers only the airline’s cancellation penalty (usually around ₹4,500 for domestic flights and higher for international), and not fuel surcharges or taxes.
Ved advises adjusting the second-largest travel expense — hotels — to absorb higher airfare costs. “Stay a day in a lower room category or drop the hotel tier slightly, and you can often still make the trip work within your original budget. Flights are mandatory; small adjustments elsewhere can offset the difference,” he said.
Pittie echoes the importance of flexibility and forward planning. Booking early, considering alternate dates, using fare trackers, and opting for flexible tickets— typically costing 8–10% of the ticket price— can help manage volatility.
“An emerging trend is travellers opting for flexible itineraries,” he noted. “A combination of early planning, flexibility and smart use of digital tools allows travellers to continue exploring while managing costs more effectively.”
A mix of fuel price shock, airspace disruptions, war risk insurance premiums and the removal of domestic fare caps has made air travel more expensive, more complex and less predictable than it was just months ago.
For casual travellers, this may mean postponing a short break or choosing a closer destination.
For frequent business travellers like Reddy and Gowdha, it means rethinking every trip—planning much earlier and building flexibility into every booking.