Sharp rise in domestic airfares: Govt introduces 25% cut in landing, parking charges amid West Asia war

The Ministry of Civil Aviation directed the Airports Authority of India (AAI) to reduce landing and parking charges at non-major airports in a bid to curb the sharp rise in domestic airfares amid the West Asia crisis.

The Ministry of Civil Aviation said in a statement on Wednesday that the AAI will reduce Landing and Parking Charges — part of the aeronautical tariff — at all its non-major airports by 25 per cent of the approved rate.

The order states that the reduction will come into immediate effect for all domestic flights and will remain applicable for a period of three months. The decision will be reviewed before the completion of the three-month period.

“…As part of a multi-layered response to these unprecedented challenges, the Ministry has taken another significant decision to reduce landing and parking charges for domestic carriers by 25% for a period of three months,” the ministry said.

“The Ministry has issued directions to the AERA to reduce landing and parking charges by 25% from the prevailing tariff at all major airports under its purview. This reduction has been brought into immediate effect for all domestic flights and will remain applicable for a period of three months,” it added.

“Similarly, the Airports Authority of India (AAI) has also been directed to reduce landing and parking charges at all its non-major airports by 25% of the approved rate. This reduction for all domestic flights will also remain applicable for a period of three months,” the ministry said.

“These measures are expected to reduce landing and parking charges payable by airlines at major airports during the three-month period by approximately ₹400 crore,” the ministry said.

The directive comes in view of rising operational costs for airlines triggered by the ongoing tensions in West Asia, which have disrupted fuel supplies and pushed up global jet fuel prices.

"Air India group today announced further revisions to its fuel surcharge structure across domestic and international routes," the airline said in a statement.

The airline also noted the surge in global fuel prices.

"According to the latest data published by the International Air Transport Association (IATA), the global average jet fuel price rose to USD 195.19 per barrel for the week ending March 27, 2026, up from USD 99.40 at the end of February, recording a surge of close to 100%," the airline said.

Similarly, IndiGo had earlier announced the introduction of a fuel charge on both domestic and international routes.

According to an official statement, "IndiGo is introducing a fuel charge on domestic and international routes, effective from March 14, 2026."

The airline had stated that the move was prompted by the sharp rise in fuel prices due to geopolitical tensions.

"This measure is taken due to the significant surge in fuel prices following the ongoing geopolitical issues in the Middle East. IATA's Jet Fuel Monitor indicates an 85 % increase in fuel prices for the region," the statement said.

The government's decision to lower airport charges is expected to reduce operational costs for airlines and help prevent further escalation in domestic ticket prices for passengers.