Rising fuel, tighter capacity lift airfares, says IATA

New Delhi: Airfares are already rising amid the ongoing Middle East conflict, driven by higher fuel costs, tight capacity, and thin airline margins, according to the International Air Transport Association (IATA).

Releasing global passenger demand data for February 2026, IATA said total de-mand, measured in Revenue Passenger Kilometres (RPK), rose 6.1 per cent year-on-year. Capacity, measured in Available Seat Kilometres (ASK), increased 5.6 per cent, while the passenger load factor reached a record 81.4 per cent for February. IATA Director General Willie Walsh said February was a strong month, reflecting solid demand fundamentals for the year ahead. However, he cautioned that the full impact of the Middle East war remains uncertain. “Without knowing the length and intensity of the conflict, it is impossible to quantify its full impact on airline prospects,” he said.

Walsh noted that fuel costs have risen sharply and airlines are already increasing fares. Capacity deployment is also being adjusted, particularly on routes to, from, and through the Middle East, as well as regions facing fuel supply issues.