Airfares between the UAE and India are likely to come under upward pressure after Indian carrier IndiGo announced a revision in fuel charges, driven by a sharp rise in jet fuel prices.

The airline confirmed that updated fuel surcharges will apply to all new bookings made from 1 am on April 2, impacting both domestic and international routes. IndiGo has also recalibrated its domestic and international fuel charge to vary by different travel distances.

According to IndiGo, flights to the GCC and the Middle East will cost INR 3,000 for journeys of up to 2,000 kms. Meanwhile, journeys above 2,000 kms will be charged INR 5,000. 

This comes after IndiGo introduced a fuel charge on domestic and international routes from March 14 onwards. 

The decision comes as jet fuel prices have surged significantly.

According to the International Air Transport Association (IATA), fuel prices in the region have risen by more than 130 percent month-on-month.

Fuel, one of the largest cost components for airlines, has seen such a sharp increase that it has forced carriers to adjust pricing structures. IndiGo said the revision is necessary to offset part of the rising operational costs.

Government caps

Despite the steep rise in fuel prices, Indian authorities have stepped in to limit the burden.

The Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation have allowed only a 25 per cent pass-through of the increase for domestic operations, adopting a staggered approach to protect both airlines and passengers.

Higher ticket costs

Under the revised structure, domestic fuel charges now range from INR 275 on short routes to INR 950 on longer sectors.

Pparticularly on high-demand routes such as Dubai–Mumbai or Abu Dhabi–Delhi, this suggests that fares could edge higher as airlines respond to rising fuel costs.

Airlines across Asia have raised ticket prices and introduced fuel surcharges after turmoil in the global oil market pushed jet fuel costs higher and disrupted key flight routes.

Source: Gulf News