Middle East Crisis: Flights from Delhi/Mumbai to New York/London dearer by up to 150%?

Domestic as well as international flights from some of the main Indian cities have become significantly dearer in the recent past owing to closure of Middle Eastern airspaces. According to Zee Business research, while airfares of international flights from New Delhi, Mumbai and Bengaluru have surged by up to 150 per cent since April 1, domestic tickets have seen surges of up to 70 per cent owing to airspace closures and rising benchmark oil rates. The surge is visible across single-day spot rates as well as seven-day averages, say analysts.

International flights become up to 150% more expensive

Fares for flights from Delhi, Mumbai and Bengaluru to international destinations like New York and Chicago in the US, London in the UK and Frankfurt in Germany have risen in the range of 50-150 per cent.

Domestic flight tickets become up to 70% dearer

Airfares for domestic flights have increased by up to 70 per cent during this period.

Key reasons behind airfare surge

Analysts attribute the rising airfares to reasons like the closure of airspaces in the Middle East and higher benchmark rates.

Benchmark oil rates -- which influence aviation turbine fuel (ATF) prices -- have surged 79.5 per cent for the year so far. Aviation turbine fuel, commonly known as jet fuel, makes one of the key items in airlines' operating costs.

Single-route airfare comparison

Delhi-Chicago international flight

The spot airfare of flights from Delhi to Chicago has more than doubled to Rs 1.40 lakh-Rs 2.40 lakh from the earlier Rs 80,000-Rs 1.20 lakh.

Delhi-New York international flight

The fare for flights from the Indian national capital to New York has risen by 80-120 per cent to Rs 90,000-Rs 1.40 lakh.

Mumbai-New York international flight

The fare for flights from Mumbai to New York has increased by more than 90 per cent to Rs 1.40 lakh-Rs 2.50 lakh.

Bengaluru-San Francisco international flight

The fare for Bengaluru-San Francisco flights has increased by more than 60 per cent to Rs 1.60 lakh-Rs 2.80 lakh.

Delhi-London international flight

The fare for flights from Delhi to London has increased by more than 70 per cent to Rs 70,000-Rs 2.20 lakh.

Delhi-Paris international flight

The fare for flights from Delhi to Paris has increased by more than 70 per cent to Rs 70,000-Rs 2.15 lakh.

The fare for flights from Mumbai to Frankfurt has increased by more than 50 per cent to Rs 70,000-Rs 1.50 lakh.

ATF rates hiked with effect from April 1

This month, state-run oil marketing companies raised ATF rates -- the steepest-ever monthly rise across major metro cities -- on the back of a surge in global crude oil prices amid ongoing geopolitical tensions in the Middle East and disruptions in key energy supply routes, including the Strait of Hormuz.

According to the latest data, ATF prices in Delhi and Mumbai stood at Rs 2,07,341.2 per kilolitre and Rs 1,94,968.7 per kilolitre, respectively.

ATF prices in India have been deregulated since 2001 and are reviewed periodically to align them with international benchmarks and currency changes.

International routes and foreign carriers will continue to pay market-aligned ATF rates.

Domestic airlines benefit from a capped ATF price increase to ensure operational stability. Normally, they bear the full impact of global crude price surges.

Without this cap, ATF prices would have risen over 100 per cent this month amid the extraordinary global crude rally.