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Rising jet fuel prices and disrupted airspace in the Middle East are beginning to change travel costs.
Iran Israel War Updates: Air India, Qantas Airways Hike Flight Prices, Dubai-Delhi Flights Touch 40,000
For travellers dreaming of their next getaway, the global aviation industry is sending a clear signal: prepare for higher airfares. Escalating tensions in the Middle East, particularly the ongoing conflict involving Iran and Israel and broader US military involvement in the region, are already beginning to ripple through the global travel economy.
The most immediate impact is being felt in jet fuel prices, one of the biggest expenses for airlines. Prior to the conflict, jet fuel prices were hovering around $85–$90 per barrel. In recent days, however, they have surged dramatically to between $150 and $200 per barrel, placing enormous financial pressure on airlines worldwide.
Airlines are now warning that passengers may soon feel the impact.
Airlines Begin Raising Fares
Major carriers have already begun adjusting ticket prices. Airlines such as Qantas Airways and Air New Zealand recently announced fare hikes, citing the sudden spike in fuel costs triggered by the conflict. Air New Zealand has even suspended its financial outlook for 2026 due to the uncertainty surrounding the geopolitical situation and fuel markets.
The situation is not limited to the Asia-Pacific region. Airlines across the globe rely heavily on jet fuel, which typically accounts for up to 40% of operating costs. With fuel prices rising sharply, maintaining current ticket prices has become increasingly difficult.
Air India Introduces Fuel Surcharges
In India, the impact is already becoming visible. Air India has announced a phased increase in fuel surcharges across its domestic and international routes.
Under the revised structure:
- Flights to the Middle East will see a surcharge of around $10.
- Flights to Southeast Asia may increase by $20 to $60.
- Flights to Africa could see surcharges rising between $30 and $90.
The airline said the move was unavoidable, noting that without the surcharge adjustment, some routes could become commercially unviable and potentially face cancellations.
However, there may be a small silver lining for budget travellers. Air India Express, the airline’s low-cost arm, has said it will not introduce fuel surcharges for now, which could offer temporary relief for passengers.
Disrupted Airspace Adds To Travel Stress
Beyond fuel prices, the conflict is also affecting global flight routes and airspace safety.
Dubai-Delhi flights, which at one time hovered around 12-15k are now costing travellers anywhere between 32-50K one way. This is because airspace across parts of the Middle East has become increasingly unpredictable. At one point this week, aircraft approaching Dubai were briefly placed in holding patterns following reports of a potential missile threat, according to flight tracking service Flightradar24. While flights eventually landed safely, such incidents highlight the operational risks airlines are navigating.
When airspace becomes restricted or dangerous, airlines often reroute flights, which leads to longer journeys and higher fuel consumption—costs that are often passed on to passengers.
Energy Markets Add To The Uncertainty
The broader energy market disruption is also complicating the situation. The Strait of Hormuz, one of the world’s most important energy shipping routes, has remained tense amid the conflict. Hundreds of cargo ships have reportedly been delayed in the region.
Meanwhile, missile strikes on Qatar’s gas infrastructure forced QatarEnergy to temporarily halt production at some facilities, tightening global natural gas supply.
Countries like India, which import a large share of their energy needs, are especially vulnerable to these price fluctuations and airfares could fluctuate significantly depending on how long the geopolitical tensions continue. Popular international routes—particularly those connecting Europe, Asia and the Middle East—could see the biggest changes.
Travel planners suggest booking earlier than usual, monitoring fare alerts and being open to alternative routes or travel dates.
March 11, 2026, 15:12 IST