Air travel gets dearer amid rising fuel prices, question mark over summer holiday breaks
Times of India | 12 March 2026
Kolkata: The war in West Asia, which jacked up air fares and fuelled uncertainty over whether hotels would be able to operate in the face of an acute commercial LPG crisis, resulted in a sharp dip in demand for summer travel, which usually comprises a third of the annual travel trade business.
While fares to Europe and the US went up by 4-5 times as airlines rerouted flights to avoid airspaces in the Gulf, where missile and drone attacks posed a threat to safety, fares to destinations in South-East Asia and Australia also went up. Air India on Tuesday announced a fuel surcharge of Rs 399 for travel within India and SAARC countries, and a $20 rise in surcharge from $40 per ticket to $60 (Rs 5,500) per ticket for travel to South-East Asia.
But more than the fare hike, it was the uncertainty over how the war escalates and widens that acted as a dampener on summer bookings. Travel agents said the LPG crisis also played on the minds of people and led to a lack of demand even on the domestic front.
"Holiday is now the last thing on people's minds. They do not want to travel and then get stuck in a situation where hotels and restaurants are unable to provide food. For the industry, this is the most challenging time since Covid," said Anjani Dhanuka of the Travel Agents Association of India.
Anil Punjabi of the Travel Agents Federation of India conceded the situation was extremely bleak. "We always try to look at the positive picture. But for once, we are asking clients to tread on the side of caution and watch the situation. While fares will be refunded if flights are cancelled, it is not so for hotels and local travel," said Punjabi.
Indian Association of Tour Operators (IATO) chairman Debjit Dutta, who was unable to attend ITB Berlin 2026 — the world's leading travel show from March 3 to 5 — due to the flight disruptions following the outbreak of the war, said domestic tourism would have benefited majorly this summer if there was no commercial LPG crisis. "This was a golden opportunity for hill stations to make hay as there is no travel to Europe this summer," he said.
IATO president Ravi Gusain said if the war does not end this month, summer holidays may be wiped out. "This is not a good scenario for tourism. Around 40% of Indians who travel abroad use Gulf carriers. With these services being the worst hit, outbound as well as inbound tourism will be badly affected unless the war stops soon," he said.
"We are scheduled to fly to Jaipur next week for a family trip. From there, we even had a family function to attend at Bangalore. I am yet to buy the tickets as the trip was planned based on the school reopening date of my children. Now that the flight fares have increased, it is going to pinch my pocket hard," said Soumya Mukherjee, a techie and resident of Entally.