New Delhi, India — April 1, 2026
Air travelers in India may soon face higher ticket prices as aviation turbine fuel (ATF), commonly known as jet fuel, has surged to record levels. For the first time, domestic jet fuel prices have crossed the ₹2 lakh per kiloliter mark, significantly increasing operational costs for airlines.
State-run oil companies announced a sharp revision in ATF prices for April, with rates rising by over 115% for domestic flights and approximately 107% for international operations. The spike comes amid global oil market volatility and continued depreciation of the Indian rupee.
Jet Fuel Prices Hit Record High
At Indira Gandhi International Airport, the country’s busiest aviation hub, jet fuel prices have climbed to ₹2,07,341 per kiloliter, up from ₹96,638 last month—marking an increase of more than 114%.
Other major cities have witnessed similar surges. In Mumbai, prices rose from ₹90,451 to ₹1,94,968 per kiloliter, while Kolkata and Chennai have also seen ATF prices cross the ₹2 lakh threshold.
International ATF Prices Cross $1,000 Mark
In a first for India, jet fuel prices for international flights have crossed $1,000 per kiloliter. In Delhi, prices jumped from $816 last month to approximately $1,690, reflecting more than a twofold increase.
Kolkata reported even higher international ATF rates at $1,727, compared to $855 previously. The surge is further exacerbated by the weakening Indian rupee, which has slipped beyond ₹95 per US dollar.
Airlines Face Mounting Cost Pressure
Jet fuel accounts for nearly 40–45% of an airline’s operating costs in India, making it the single largest expense component. The sharp increase in ATF prices is expected to significantly strain airline finances.
Industry experts warn that airlines may have little choice but to pass on the increased costs to passengers, leading to higher airfares in the coming weeks.
Impact on Air Travel Demand
Higher ticket prices could dampen travel demand, particularly in price-sensitive segments. Airlines may also be forced to optimize routes, reduce flight frequencies, or adjust capacity to manage rising expenses.
The situation is further complicated by ongoing geopolitical tensions in West Asia, which have already forced airlines to take longer routes, increasing fuel consumption and operational costs.
Aviation Sector Faces Tough Road Ahead
The combination of record-high jet fuel prices, currency depreciation, and global uncertainty is expected to pose serious challenges for India’s aviation sector. Airlines that are already operating under tight margins could face increased financial stress in the near term.
