UAE-India airfares set to rise as IndiGo raises fuel charges from October 6 amid US-Iran war

Dubai: Airfares between the UAE and India are set to come under fresh upward pressure after IndiGo announced higher fuel charges on international flights, citing a sustained rise in Aviation Turbine Fuel (ATF) costs amid continuing geopolitical tensions in the Middle East.

The new charges will apply to all IndiGo bookings made from 12.01am on October 6, the airline said on Monday.

For flights between the GCC and Middle East, including the UAE, the revised fuel charge will be INR5,500 (about Dh215) per sector, regardless of distance.

IndiGo said the latest month-on-month increase in ATF prices had exceeded 14 per cent, pushing fuel costs to levels among the highest seen in the past decade.

The airline said ATF accounts for a significant share of its operating costs, meaning the increase was putting pressure on its cost structure and network economics.

“While offsetting the increase in fuel costs would have required a significantly larger increase in the fuel charges, IndiGo has implemented a measured and relatively modest adjustment to minimise the impact on customers,” the airline said.

IndiGo said it would continue to monitor fuel prices and make further adjustments “as and when appropriate”.

The revised international fuel charges are INR1,000 for SAARC routes up to 500km, INR3,000 for SAARC routes above 500km, INR5,500 for Southeast Asia, GCC and the Middle East, North and East Asia, INR6,000 for Africa and INR10,000 for Europe.

The charges are added to the cost of a ticket and apply to new bookings from October 6.

The latest increase marks another rise in the fuel component of IndiGo fares this year.

In April, the airline increased its fuel charge for international routes after saying ATF prices had more than doubled in a month. At the time, the charge for GCC and Middle East flights was about Dh115 for journeys up to 2,000km and Dh191 for routes above 2,000km.

The new flat Dh210 charge therefore represents an increase of about Dh95 on sectors previously covered by the lower Dh115 band, while longer GCC and Middle East sectors face an additional Dh19.

IndiGo had also introduced a fuel charge in March as Middle East geopolitical tensions sent regional jet fuel prices sharply higher. The airline said at the time that fuel prices in the region had risen by more than 85 per cent.

The latest move comes as UAE-India airfares remain significantly more expensive than before the Middle East conflict began in February.

The war triggered widespread flight cancellations and disruptions across the UAE and wider region, while airlines subsequently faced higher fuel costs, reduced capacity and longer flight paths.

Gulf News reported in April that a return Dubai-Mumbai ticket for travel that week was selling for about Dh4,230, compared with Dh730 less than two months earlier, as demand, fuel costs and constrained capacity pushed fares higher.

Although additional capacity later brought some relief, fares remained above last year's levels. By June, travel agents said prices had eased on some UAE-India sectors as airlines restored capacity, but warned that prices could rise again during peak periods.

More recently, India-bound fares have again faced pressure from strong seasonal demand. Gulf News reported last month that travellers heading to India for Dussehra and Diwali could still find some fares below Dh1,500, although travel agents expected prices to rise through October as demand strengthened.

The fuel-charge increase also follows IndiGo's September revision of several ancillary fees.

The airline raised its excess-baggage charge to about Dh30 per additional kilogram, from Dh27. The fee for infants aged three days to two years increased to about Dh114, from Dh76.

IndiGo also increased its unaccompanied-minor service fee for domestic travel to about Dh229, from Dh191, while the international fee rose to about Dh496. Its Fast Forward priority service increased to about Dh25 from Dh19 on domestic flights and to about Dh32 per sector on international flights.

Those September changes were separate from the airline's standard ticket fare and baggage allowance, Moneycontrol reported, and were described as part of a routine review of ancillary charges.

IndiGo said the latest fuel-charge revision was necessary because of the sustained increase in operating costs.

“IndiGo regrets the additional burden these revised fuel charges may place on its customers,” the airline said, adding that the decision reflected “the sustained increase in operating costs and the evolving market environment”.

The carrier said it remained committed to offering affordable and consistent travel despite the higher costs.

The latest increase comes as airlines globally continue to contend with the aviation fallout from the Middle East conflict, with fuel prices, route changes and capacity constraints all feeding into ticket pricing.