New Delhi, March 31: With sharp rise in fuel costs as well as tight capacity and thin margins for airlines, airfares are already rising in the wake of the Middle East war, global airlines’ grouping IATA said on Tuesday.
The International Air Transport Association (IATA) represents around 350 airlines, including Air India, Air India Express, IndiGo, and SpiceJet.
On Tuesday, the grouping released the data for global passenger demand in February 2026 and said total demand in terms of Revenue Passenger Kilometres (RPK) rose 6.1 per cent last month compared to the year-ago period.
Total capacity, measured in Available Seat Kilometres (ASK), increased 5.6 per cent year-on-year while the passenger load factor stood at 81.4 per cent, the highest February figure on record, it said in a release.
IATA Director General Willie Walsh said with an RPK expansion of 6.1 per cent, February was a strong month, showing that the fundamentals for demand growth were in place for a positive year.
“However, without knowing the length and intensity of the war in the Middle East, it is impossible to quantify the full impact that it will have on airline prospects. But some things are already clear. Fuel costs have risen sharply. With tight capacity and thin margins, airfares are already rising,” he said.
According to him, capacity deployment is also adjusting, particularly for traffic to, from, or through the Middle East, or in areas where fuel supply is an issue.
“Capacity growth scheduled for March, for example, has eased to 3.3 per cent from earlier predictions of more than 5 per cent,” Walsh noted.
In a separate development, IndiGo, on Tuesday, announced that Walsh will be the next CEO of the airline.
According to IATA, in India, domestic RPK increased 0.6 per cent year-on-year in February compared to 3.5 per cent in January.
IATA said this partly reflects a higher base of comparison, given the exceptionally strong demand recorded in February 2025.
“Capacity rose by 1.9 per cent in February 2026, leading to a 1.2 percentage point decline in the load factor to 89.1 per cent. Nonetheless, it remained the highest among major domestic markets,” it added.
Meanwhile, the ongoing Middle East conflict, involving US, Israel and Iran that started on February 28, is disrupting flight operations as airlines are forced to curtail services due to operational challenges and airspace curbs. (PTI)
