Average domestic airfares rose 20.5% in June as fuel and operating costs climbed
India’s aviation ministry said average fares across 72 domestic sectors increased 20.5% in June 2026 versus March 2025, citing higher aviation turbine fuel, forex, tax and aircraft-lease costs. DGCA is monitoring fares on 78 routes.
What happened
Directorate General of Civil Aviation (DGCA) · India’s aviation ministry said average fares on 72 domestic routes rose 20.5% in June 2026, driven by fuel,
Key facts
- 20.5% increase in average airfares across 72 domestic sectors in June 2026 versus March 2025
- ATF accounts for 35%-40% of airline operating expenses
- ATF prices rose over 100% amid the West Asia conflict
- Tariff Monitoring Unit monitors 78 routes
- ATF price increase capped at 25% above the March 1, 2026 base price for April-May 2026
Why this matters
Strategic teams should prioritize fuel-efficiency, leasing, maintenance and network partnerships that reduce exposure to the cost pressures driving domestic fare inflation.