Gulf conflict raises insurance costs for Indian airlines, fares may rise

Industry sources say Indian airline operators are now paying additional insurance charges for every aircraft flying into the Middle East. This is significantly increasing the cost of operations on these routes. Fares may rise as a result.

Indian airlines are facing higher insurance costs due to the ongoing Gulf conflict. Industry sources told India Today TV that airline operators are now paying additional insurance charges for every aircraft flying into the Middle East. This is significantly increasing the cost of operations on these routes.

The report was published on March 12, 2026. Keywords include Indian airlines, risk premiums for insurance, and airline risk premiums increase. The rise in insurance premiums due to the conflict may lead to higher passenger fares, though no specific figures or airline names are mentioned in the sources.

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Photorealistic image of a jetliner amid Middle East conflict, with surging fuel prices, closed airspace map, and frustrated airport passengers.
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Airlines raise fares amid Middle East war fuel surge

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Global airlines are increasing ticket prices as jet fuel costs soar due to the US-Israel conflict with Iran. Airspace closures in the region are forcing reroutes and cancellations, exacerbating the disruptions. Oil prices have fluctuated sharply, impacting carriers worldwide.

The ongoing conflict in the Middle East, involving U.S. and Israeli air assaults on Iran and Iranian retaliatory strikes, has led to widespread flight suspensions by regional airlines. Oil prices have surged over 10% to more than $75 per barrel due to the shutdown of the Strait of Hormuz. Analysts predict potential increases in airfares as airlines face higher fuel costs.

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Major airlines in the Middle East, including Emirates and Etihad, have begun resuming limited flight operations from hubs like Dubai and Abu Dhabi following US-Israeli strikes on Iran and subsequent airspace closures. Qatar Airways continues to suspend services due to the ongoing closure of Qatari airspace. Travelers are advised to check updates directly with airlines as the situation remains fluid.

Brent crude oil prices have exceeded $100 a barrel amid Iranian attacks on commercial shipping and disruptions in the Strait of Hormuz. The International Energy Agency and the United States are releasing oil reserves to counter supply concerns. In India, the crisis is fueling inflation risks, higher agricultural input costs, and trade disruptions.

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As limited flights resumed from UAE hubs on March 2, 2026, amid ongoing US-Israel strikes on Iran and regional retaliation, airlines like Etihad and Emirates offered partial relief to stranded passengers. However, thousands of cancellations persist across Gulf airports, with full recovery uncertain as the conflict shows no signs of abating.

Air India plans additional cuts to international flights in June and July after a 10-12% reduction in April and May. The move comes amid rising fuel prices and longer flight paths that have increased operating costs and hurt profitability. CEO Campbell Wilson informed employees of the challenging situation in an internal communication.

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The conflict in the Middle East is disrupting global logistics chains, risking longer delays for packages headed to French consumers. Tensions are particularly affecting air freight through hubs in Dubai, Doha, and Abu Dhabi. Fuel price increases are also being observed.

 

 

 

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