Air India raises fares as Middle East conflict lifts fuel costs

Indian passengers voiced their concerns on Wednesday (March 11) as Air India announced phased expansion of ⁠fuel surcharge on its domestic and international routes.

The Iran war has disrupted a key oil export corridor, driving up airline costs, pushing fares higher on some routes and deepening fears about a broader hit to travel demand.

Airspace restrictions in the wake of the crisis in the Middle East dealt another blow to Indian airlines, which count the region as a crucial corridor for flights to Europe and the U.S. since Pakistan banned Indian carriers from its airspace last year.

“The government should take care of this … during these times of crisis (Middle East crisis), the prices should not be increased," said a passenger.

Australia's Qantas Airways, Scandinavia's and Air New Zealand were among the carriers that announced price hikes on Tuesday (March 10), while others warned the crisis could threaten fuel supplies or force further schedule changes.

Production: Mark Ho/Reuters