Air India has announced a phased increase in fuel surcharges across its domestic and international routes, citing rising jet fuel prices due to geopolitical tensions in the Gulf region. Aviation turbine fuel (ATF), which accounts for nearly 40% of an airline’s operating costs, has seen a significant price surge since early March 2026. In India, high Excise Duty and VAT in major metro cities like Delhi and Mumbai further magnify the impact, adding substantial strain on airline operations.
The new surcharges will be implemented in three phases, covering all flights, including those operated by Air India Express.
Phased Implementation of Fuel Surcharges
Air India’s new fuel surcharges will be implemented in three phases, covering all flights, including those operated by Air India Express.
Phase 1: Effective 12 March 2026
| Region | Current Fuel Surcharge | Increase | Revised Fuel Surcharge |
|---|---|---|---|
| Domestic India | Not applied | ₹399 | ₹399 |
| SAARC | Not applied | ₹399 | ₹399 |
| West Asia / Middle East | Not applied | USD 10 | USD 10 |
| Southeast Asia² | USD 40 | USD 20 | USD 60 |
| Africa | USD 60 | USD 30 | USD 90 |
Fuel surcharge is not applied on flights to/from Singapore but will apply from Phase 1.
Phase 2: Effective 18 March 2026
| Region | Current Fuel Surcharge | Increase | Revised Fuel Surcharge |
|---|---|---|---|
| Europe | USD 100 | USD 25 | USD 125 |
| North America | USD 150 | USD 50 | USD 200 |
| Australia | USD 150 | USD 50 | USD 200 |
Air India clarified that tickets issued prior to these dates will not attract the new surcharge, and emphasized that the increases are necessitated by factors beyond the airline’s control. Absent these surcharges, some flights might be unable to operate profitably or could even face cancellations. The airline also stated that it reviews surcharges periodically and will adjust them according to market conditions. Currently, Air India Express flights do not levy fuel surcharges.
The fare hike means domestic travelers will pay an extra ₹399, while international passengers flying to Europe, North America, and Australia will face an increase of up to USD 50. Travel experts suggest that the combination of rising global fuel costs and domestic taxes on ATF is making both domestic and international flights more expensive, a trend likely to continue if fuel prices remain volatile.
Passengers are advised to plan and book their tickets early to avoid last-minute fare shocks. The revised fuel surcharges are designed to help Air India manage operational costs while continuing to provide quality service across its network.
Air India’s phased fare hike reflects the ongoing challenges airlines face amid global fuel price volatility and rising operational costs, affecting travelers both within India and abroad.