Airfares Up in 2026: How Indian Travellers Can Fight Back
📅 Updated as of 3 Oct 2026. Fuel surcharges and award prices change often; we’ll refresh this guide when they do.
If flights have felt expensive this year, you’re not imagining it. Jet fuel prices spiked after the West Asia conflict in March, airlines added fuel surcharges, and Indian carriers are flying fewer seats. Diwali falls on 8 November this year, and festive fares are already high. Here’s what’s driving prices, and how to use your points so you pay less.
Why fares are up
- Jet fuel nearly doubled in March. After the Strait of Hormuz disruption, IATA’s global jet fuel price went from about $99 a barrel at the end of February to about $195 in late March.
- Indian ATF keeps rising. The government capped April’s domestic hike at 25%, but prices rose again by about 5.5% on 1 September and by about ₹16 a litre (around 13%) on 1 October.
- Fuel surcharges are on most tickets. Air India currently adds $125 to Europe and the UK, $200 to North America and Australia, $60 to Singapore and $50 to the Middle East per sector. IndiGo’s distance-based surcharge goes up to ₹10,000 on UK and Europe flights.
- Fewer seats. Domestic capacity in September was about 5.6% lower than a year ago, with IndiGo and Air India both flying less.
What it means for Diwali: return fares out of Delhi for 6–8 November were already ₹13,000–18,000 in mid-September (Delhi–Hyderabad ₹18,000, Delhi–Bengaluru ₹16,000, Delhi–Mumbai ₹13,000). Waiting rarely helps when capacity is this tight.
How to fight back with points
When cash fares go up, award prices on fixed charts don’t, so every point you redeem is worth more. These are the redemptions we’d look at first from India.
| Redemption (one way) | Points | Best Indian card route |
|---|---|---|
| Air India economy, Delhi–London | 35,000 Maharaja Club | Axis Atlas 1:2, Magnus for Burgundy 5:4 |
| Air India business, Delhi–San Francisco | 130,000 Maharaja Club | Same as above |
| Singapore Airlines business, India–Singapore (Saver) | 45,000 KrisFlyer | HDFC Infinia or Diners Black 1:1 via SmartBuy |
| Star Alliance business, India–Europe up to 4,000 miles (e.g. Delhi–Frankfurt) | 40,000 Aeroplan | Axis Magnus for Burgundy 5:4; Marriott Bonvoy 3:1 |
| Star Alliance business, Delhi–London | 70,000 Aeroplan | Same as above |
Five rules for 2026
- Use points on expensive dates, cash on cheap ones. Festive weekends and December holidays are where a fixed award price saves you the most.
- Find the seat before you transfer. Transfers are one-way. Search award space first, then move points.
- Mind the new Axis caps. Since 23 September, Air India, Flying Blue and Qantas are in Axis Group A, which has a much smaller yearly cap. Plan big Air India transfers carefully.
- Watch the taxes. On some awards, the fuel surcharge is charged on top of the points. A “cheap” award with a big surcharge can cost more than you think.
- Pay cash with the right card. If you do pay cash, use a card that earns well on travel. A zero-forex card helps on foreign carriers, and the Axis overseas spends offer adds vouchers on international bookings.
DealUni take
Expensive cash fares are the best time to redeem. Book festive and year-end travel now, use Air India or Star Alliance awards where the maths works, and keep cash bookings on a card that pays you back. Need help finding where your points go furthest? Try the DealUni AI Planner.
Kiraya mehenga hai, par points abhi bhi sasta raasta hain. (Fares are expensive, but points are still the cheaper way.)
Sources: Air India fuel surcharge release and July revision (Business Standard); ATF prices from Business Standard (1 Oct 2026); IndiGo surcharge from Gulf News; capacity and Diwali fares from Business Today (14 Sep 2026); award prices from Air India and Air Canada Aeroplan; KrisFlyer Saver price from Singapore Airlines’ award chart. Transfer ratios from DealUni’s card data (26 Sep 2026).
