India's largest airline, IndiGo, has indicated that further increases in airfares may be necessary to manage the rising cost of aviation turbine fuel (ATF), which continues to put significant pressure on the airline's financial performance.

Speaking on Thursday, IndiGo CEO Willie Walsh said the airline would have to consider raising ticket prices to recover part of the substantial increase in fuel expenditure. He also indicated that aviation fuel costs are likely to remain elevated during the December quarter.

The announcement comes amid renewed tensions in West Asia, which have contributed to volatility in international oil markets and pushed jet fuel prices higher. Major Indian airlines have already revised or reintroduced fuel surcharges in response to the rising operating costs.

Fuel expenses rise sharply

IndiGo reported a consolidated net loss of ₹1,879 crore for the July–September quarter of FY2026–27. A major factor behind the loss was the sharp increase in fuel expenditure, which rose by 67% year-on-year to ₹9,967 crore, compared with ₹5,962 crore during the corresponding period last year.

According to Walsh, the airline has managed to recover only around 60% of the additional fuel expenses through fare adjustments and other cost-management measures. Further fare revisions may therefore be required to address the remaining financial pressure.

Fuel surcharges already affecting passengers

Earlier in October, IndiGo reintroduced fuel surcharges ranging from ₹375 to ₹10,000, depending on the route and distance travelled. Other major airlines in India have also revised their fuel-related charges.

Aviation turbine fuel prices for domestic operations increased by approximately 13.2% in October compared with September, adding around ₹16,000 per kilolitre. The year-on-year increase was reported at 46.2%.

International jet fuel prices have also climbed considerably. The sharp rise in the premium of jet fuel over crude oil has further increased the operating burden on airlines.

Impact on air travellers

IndiGo's possible fare increases could make air travel more expensive for passengers, particularly those planning long-distance domestic and international journeys during the upcoming holiday and winter travel seasons.

Higher ticket prices may also affect travel demand, as airlines attempt to balance rising operational expenses with passenger affordability.

For Kerala, which depends significantly on domestic and international air connectivity, continued increases in airfares could influence travel budgets for tourists visiting destinations such as Kochi, Thiruvananthapuram, Kozhikode and Kannur.

With fuel prices expected to remain high in the coming months, passengers are advised to plan their journeys in advance and monitor airline fare announcements before booking tickets.