India Airline Ticket Prices May Rise 20-25% as Jet Fuel Costs Climb

Industry analysts warn that a tightening jet fuel market could lift Indian airline ticket prices by roughly 20‑25%, since fuel accounts for about 30% of a fare. A McKinsey report points to a widening jet‑fuel crack spread that may average over $50 per barrel in 2026, driven by higher refining margins and constrained supply from Gulf and Asian exporters.

India’s civil aviation minister K Ram Mohan Naidu said the government is closely monitoring aviation turbine fuel (ATF) prices and is in talks with airlines about reviewing surge charges if fuel prices remain stable. The centre reviews ATF prices fortnightly, has set up a Rs 10,000 crore price‑stabilisation fund, capped ATF rates for domestic carriers, reduced airport fees and extended credit‑linkage support to mitigate the impact on airlines and passengers.