UAE - India airfares set to rise further as jet fuel crisis deepens

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Abu Dhabi: Airfares for Indian expatriates travelling between the Gulf and India are set to rise sharply as surging international fuel costs place the Indian aviation industry under extreme stress.

Major carriers have warned of a potential shutdown, citing the immense financial pressure caused by global supply disruptions and the ongoing conflict in the Middle East.

The Federation of Indian Airlines, representing the country’s leading carriers, has cautioned that the industry is at a breaking point, with some operations on the verge of closing down.

While the Indian government has kept domestic fuel prices steady to protect local routes, international fuel rates have been significantly increased to reflect rising global oil prices.

This disparity places an immense burden on long-haul segments, which are vital for the millions of Indian nationals residing in the Gulf region. Fuel typically accounts for up to 40 per cent of an airline's operating costs, making carriers highly susceptible to these price shocks and a weakening local currency.

Industry experts suggest that if the situation persists, passengers may face reduced flight frequencies and limited booking flexibility as airlines move to cut capacity.

In response to the crisis, Indian authorities have introduced temporary measures, including a cap on monthly fuel price hikes and a reduction in certain airport charges. However, the aviation sector continues to lobby for more substantial support, such as tax relief and a return to cost-capping mechanisms last seen during the pandemic.

Airlines maintain that without further intervention, the high cost of fuel—which India prices at import parity—will continue to drive fares higher for international travellers.