AirAsia X Hikes Fares Up To 40% As Jet Fuel Prices Surge Amid US-Iran Conflict; Check Latest Ticket Prices

Airlines across regions are lifting fares and adding fuel surcharge as jet fuel prices climb. The US-Iran war in the Middle East has disrupted air routes and oil supply. Budget carrier AirAsia X, along with several Indian airlines, is adjusting prices and schedules. Travellers now face higher costs and possible changes in flight availability.

AirAsia X said it is increasing fares and fuel surcharge because oil prices have surged. The airline has raised fuel surcharges by about 20%. Fare levels have gone up between 31% and 40%. AirAsia X also expects to cut some flights on routes where fuel costs can no longer be covered.

Fuel surcharge and jet fuel prices reshape AirAsia X plans

AirAsia X co-founder Tony Fernandes said during a press conference that demand for flights remained high. Fernandes added that AirAsia X stayed committed to a planned hub in Bahrain. The first flight on that route is scheduled for 26 June. Fernandes said demand for flights remained high, however, and Fernandes was optimistic the airline would return stronger after the crisis ends.

In February, AirAsia X announced plans to restart flights from Kuala Lumpur to London via Bahrain. The Bahrain hub would be AirAsia X’s first hub outside Asia. Services on this Kuala Lumpur-London route are due to begin on 26 June. That plan was announced before the conflict sharply escalated.

The situation changed after the United States and Israel fired missiles at Iran on 28 February. The strike killed Iran’s Supreme Leader Ayatollah Ali Khamenei. Iran then responded with further attacks, and clashes have continued across the region for over one month. Several airspaces have shut, further affecting long-haul routing for airlines.

The conflict has also led to a blockade of the Strait of Hormuz by Iran. This move has worsened a global oil and energy crunch. In some markets, jet fuel prices have climbed to as much as $300 per barrel. These higher input costs are feeding directly into airfares and fuel surcharge decisions.

Fuel surcharge and jet fuel prices drive Indian airlines’ response

Lufthansa has warned that the Middle East conflict could strain jet fuel supplies if it drags on. Earlier last week, Lufthansa said it sees potential bottlenecks for jet fuel availability if the war becomes prolonged. “Availability is already difficult at some airports in Asia,” Grazia Vittadini, who heads up Lufthansa's technology, IT and innovation division, told German newspaper Die Welt. "The longer the Strait of Hormuz is blocked, the more critical the supply situation can become."

Indian airlines have also felt the squeeze as key routes were closed due to the US-Iran war. At the same time, Oil Marketing Companies increased Aviation Turbine Fuel prices on 1 April. The Centre decided to allow only a partial rise of 25% for domestic flights. This measure offered limited relief while airlines recalibrated fuel surcharge structures.

IndiGo introduced a fuel surcharge on 14 March and later raised this after the ATF hike. For domestic flights, revised fuel charges now range from ₹275 to ₹950. For international services, fuel charges vary between ₹900 and ₹10,000. The surcharge depends on distance and has applied from 0001 hours on 2 April.

Domestic route distance (km)	Fuel charge (₹)
0–500	275
501–1,000	400
1,001–1,500	600
1,501–2,000	800
Above 2,000	950

Akasa Air announced on 14 March that it was adding a fuel surcharge too. The airline set this between ₹199 and ₹1,300 on domestic and international flights. The amounts vary by sector length, mirroring moves by other carriers. Air India and Air India Express have also imposed fuel surcharges linked to the Middle East conflict.

Airlines worldwide are therefore juggling high demand with rising input costs and restricted airspace. Fare increases, fuel surcharge layers and selective flight cuts have become common tools to manage risk. For passengers, this means watching for changing prices and possible schedule changes as the conflict and jet fuel prices continue to affect aviation.