Rising Fuel Costs Impact Airlines and Restaurants Amid West Asia Tensions

As tensions in West Asia drive up fuel prices, Air India plans to cut nearly 100 flights daily, impacting travel plans. Restaurants are also feeling the strain with significant hikes in LPG cylinder prices, leading to increased operational costs. While domestic LPG prices remain stable, the overall rise in fuel costs is expected to affect consumers across various sectors, from airfares to dining expenses. This article delves into the implications of these changes and how businesses are adapting to the new economic landscape.

By Narendra Chaudhary May 1, 2026, 12:01 IST

Impact of Fuel Price Surge on Airlines

New Delhi: As tensions in West Asia escalate, consumers are feeling the pinch from increasing fuel prices, affecting various sectors including airlines and dining establishments. Air India plans to reduce its daily flights by nearly 100, impacting both domestic and international routes starting in June. This decision comes as aviation turbine fuel (ATF) prices soar, creating significant operational challenges for the airline. Currently, Air India operates around 1,100 flights each day, but the cuts will primarily affect routes to Europe, North America, Australia, and Singapore. With the summer holiday season approaching, ticket prices are likely to rise due to the reduced flight availability. Global jet fuel prices have surged nearly 80%, reaching $179.46 per barrel by the week ending April 24, up from $99.40 at the end of February. A senior official from Air India mentioned, 'We are not recovering even the operating cost on most flights. A sustained increase will force us to cut more.' To mitigate costs, the airline is contemplating making in-flight meals optional on domestic and short-haul international flights, potentially saving passengers over Rs 250 on their tickets. Additionally, they are considering optional lounge access for business-class travelers.

Commercial LPG Price Increases Affect Restaurants

Hike In Commercial Cylinder Prices

Restaurants and hotels are facing even greater challenges as the price of a 19-kg commercial LPG cylinder has risen by Rs 993, now costing Rs 3,071.50 in Delhi. This marks the third price increase since late February, following hikes in March and April. Smaller 5-kg Free Trade LPG cylinders have also seen a price increase of Rs 261. This sharp rise is expected to further squeeze the profit margins of restaurants, caterers, and small businesses that heavily depend on commercial LPG for their operations. Ashish Begwani, a restaurateur with high-end establishments in major cities like Mumbai and Kolkata, stated, 'Restaurants' operating margins have been under pressure due to higher rentals and rising wages for some time now, and this consistent commercial LPG price hike will strain the operating margins further.' He added that they are currently trying to maintain prices to avoid burdening customers.

Hotels are also adapting to the rising fuel costs and supply chain disruptions. Pankaj Behl, Director of Rooms at Hyatt in Chennai, noted, 'Hotels across cities have started exploring more energy sources. We now have a fully functional bio gas plant within our hotel premises. Initially, our offerings were minimized when scarcity hit, but within a week we were back to regular offerings. In between, we were paying a premium for cylinders and started using coal instead of gas for certain dishes, but now we are fully operational again.'

On a positive note for households, domestic LPG cylinder prices remain stable. The government has also reduced export duties on diesel and ATF for the next fortnight starting May 1, lowering the diesel export duty to Rs 23 per litre from Rs 55.5 and ATF duty to Rs 33 per litre from Rs 42. However, with crude oil and fuel prices still high, consumers may soon feel the effects in various areas, from airfares to restaurant bills and everyday business costs.