- Rising aviation fuel costs due to Iran-Israel tensions are increasing 2026 airfares globally
- Airlines add fuel surcharges ranging from ₹199 to ₹1300 per flight segment to cover costs
- Flight rerouting to avoid conflict zones is raising operational costs and ticket prices
The situation around the Iran-Israel war may feel far away, but right now, it's quietly affecting something very close to home: your flight tickets for 2026. Airfares are rising, airlines are adding extra charges, and travellers everywhere are asking the same question: Should I just book everything now before prices go even higher?
Why Are Air Ticket Prices Rising In The First Place?
It all comes down to fuel. Airlines run on aviation turbine fuel (ATF), and it's one of their biggest expenses, making up 20% to 40% of total costs. So when global tensions affect oil supply, fuel prices shoot up. And that's exactly what's happening right now.
As Dr Vandana Singh, Chairperson – Aviation Cargo, Federation of Aviation Industry India (FAII), explains, “The evolving geopolitical situation in Iran introduces a layer of uncertainty for the global aviation ecosystem, primarily through its impact on crude oil prices and, consequently, aviation turbine fuel (ATF).” Simply put, whenever oil prices rise, fuel becomes expensive, leading to airlines spending more. And consequently, ticket prices go up.
Also Read: Air India Prepares For Possible Demand Dip, CEO Orders 'Tighter-Than-Ever' Control On Spending
This time around, the geopolitical tensions have led to a significant rise in oil prices, and it's already impacting airfares. Airlines have started adding fuel surcharges (extra charges added to your ticket). Akasa Air confirmed, “There has been a significant increase in the price of aviation turbine fuel… As fuel represents a significant portion of airline operating costs, this impacts the cost of operations across the aviation industry.” So they've added a surcharge of ₹199 to ₹1300 per flight segment.
Air India also said, “Aviation turbine fuel (ATF), which accounts for nearly 40% of an airline's operating costs, has seen significant price escalation due to supply interruptions.” And importantly, “Absent such fuel surcharges, it is likely that some flights would be unable to cover operating costs and would have to be cancelled.”
Even IndiGo highlighted how serious the situation is, saying, “IATA's Jet Fuel Monitor indicates an 85+% increase in fuel prices for the region.” So yes, this is real, and it's already affecting ticket prices.
Other Factors Affecting The Fares
Photo: Pexels
Not just fuel prices jacking up ticket prices; there's another hidden reason affecting the rise. Flights are also being rerouted to avoid certain airspaces, which implies higher costs for airlines since more fuel is used due to longer flying time. Krishi Vora, COO of Banana Leaf Destinationz, explains, “Flights may need to be rerouted to avoid certain regions, which can increase travel time and add to operational costs, something that eventually reflects in ticket pricing.” So even if fuel prices stabilise a bit, longer routes can still keep fares high.
Bharat Malik, Senior VP – Air and Hotel Business, Yatra Online, says, “We are already seeing airlines factor in higher fuel costs through surcharges and fare adjustments.” And this may not go away soon. He adds, “Any sustained increase is likely to keep airfares elevated, especially on long-haul and high-demand routes.” Simply put, flights to Europe, the Middle East, and long-haul destinations will likely stay expensive. These changes are bound to affect peak season and last-minute travellers too.
Interestingly, travellers' reaction to the situation is divided. As Bharat Malik reveals, “There is a clear impact on traveller sentiment, with many people taking a wait-and-watch approach." But at the same time, many are booking early. In fact, “Advance bookings are already up by 20–25% for the upcoming season,” he notes. So while some are waiting, others are locking prices now to avoid future hikes.
Also Read: Why Iran-Israel War Will Lead To A Summer Of Chaotic Travel For Indians
So, Should You Book All Your 2026 Flights Right Now?
There's no need to rush blindly and panic-book everything. Dr Vandana Singh clearly says, “From a traveller's standpoint, there is no immediate disruption to warrant panic booking.” But yes, smart early booking helps. If you already know your travel plans, booking early is a good idea. She adds, "For planned travel in 2026, especially during peak seasons, early booking remains a prudent approach to mitigate exposure to potential fare volatility.”
Krishi Vora agrees, “Early bookings not only help secure better fares but also avoid last-minute price surges and availability issues.” But are things expected to get better? Well, if tensions ease, fuel prices may settle. As Krishi Vora explains, "If the situation improves and tensions ease in the near future, there is a strong possibility that fuel prices may stabilise or even come down.” That could mean stability in ticket prices, fewer surcharges by airlines, and better deals. But for now, there's uncertainty.
So, if your trips are already planned, especially for peak season, it's advisable to book early. However, if there's flexibility in your plans or you're hunting for better deals, it's better to wait a bit. In both scenarios, fuel surcharges, price fluctuations, and high last-minute fares are to be expected.
These changes aren't brought about by travel trends but a real shift driven by global events. As Dr Vandana Singh puts it, “The sector has demonstrated strong resilience to geopolitical headwinds in the past, but sustained tensions in key oil-producing regions will continue to shape pricing dynamics in the near to medium term.” So travel isn't stopping, but it might get more expensive, at least for a while. If you know where you're going in 2026, booking early could save you a significant amount of money.
