Why flight ticket prices are soaring and what exactly you are paying for | Explained

For many Indians, Diwali means going home, and, like every year, flight tickets are set to cost more this time around. If a LocalCircles survey is to be believed, 54% of air travellers going home this festive season are paying over 50% more than they paid in 2025. However, this time the surge is not driven by the demand alone. Livemint delves into the factors driving the surge, and breaks down the airfares flyers are paying.

Blame it on the war in West Asia, international jet fuel prices witnessed a steep hike. ATF prices have surged nearly 2.5 times from ₹60.50 per litre in March 2026 to ₹142 per litre in May 2026, as per the Union Cabinet's recent briefing. ATF constitutes about 40% of the airline's total operating cost, and during periods of extreme volatility, it can go up to 60%. Higher fuel costs have increased operational expenses and are eventually being passed on to consumers.

Pakistan airspace closure is another factor behind the surge. Islamabad recently extended its airspace ban on Indian aircraft until 24 November. India and Pakistan imposed reciprocal airspace restrictions on each other's aircraft following the April 2025 Pahalgam terror attack. Due to these restrictions, Indian carriers have to take longer flight paths to Europe, North America and Central Asia, increasing fuel burn and operational costs. Initial reports had suggested that airspace closure could cost Indian airlines an additional ₹307 crore every month.

Another factor is dynamic pricing. This means airfares are not fixed and keep changing based on demand and availability. So, the same flight can cost more or less depending on when you book.

The total airfare can be broadly divided into two categories - Air Transportation Charges and Taxes & Fees.

• Base Fare: It is the basic amount any airline would charge to carry a passenger from one destination to another, before adding applicable taxes.
• Fuel Surcharge: This is in addition to the base fare and passes on the higher fuel costs to the flyers.
• Common User Terminal Equipment charge: This fee varies from airport to airport. It covers the cost of shared systems used by airlines like check-in counters, computer terminals and boarding-pass systems.
• Regional Connectivity Scheme: This fee funds the regional air connectivity to unserved and underserved areas. It was introduced by the government.

Taxes & Fees

• User Development Fee on Departures and Arrival: This is the most common charge in the airfare structure. This fee is used to fund the modernisation of airports.
• Aviation Security Fee: This covers the expenses incurred towards security services at the airports.
• Goods and Services Tax: It is charged by the government on air travel services, and the applicable rate depends on the type of air ticket, such as economy or business class.
• Convenience Fee: This is usually charged by the booking platform for the service of booking and processing a ticket.

It may be noteworthy that these charges vary by airline, airport and whether the destination is domestic or international.

Devansh Sharma is Deputy Editor at Mint (Digital), where he leads newsroom operations and helps shape the website's editorial strategy. With nearly 15 years of experience in business journalism, he specialises in business, personal finance, stock markets, mutual funds, and economic developments, while also covering geopolitics and major breaking news. During his tenure at Mint, which spans nearly two years, he has led planning and coverage of key news events, including the Union Budget, RBI monetary policy announcements, US Federal Reserve decisions, elections, and major international developments.<br><br> Devansh holds a Master's degree in Journalism & Mass Communication from the School of Communication Studies, Panjab University. Before rejoining Mint, he worked with leading business news organisations, including The Economic Times, Moneycontrol, and ET Money. At ET Money, he served as Senior Investor Educator, where he created educational content to help readers better understand investing, mutual funds, and personal finance. Throughout his career, he has focused on making complex business and financial developments accurate, accessible, and relevant for a broad audience.

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HomeMoneyPersonal FinanceWhy flight ticket prices are soaring and what exactly you are paying for | Explained

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