Air India has declared a phased increase in fuel surcharges applicable to its domestic and international flights, attributing the decision to a significant rise in jet fuel prices linked to geopolitical tensions in the Gulf region. The airline’s announcement highlighted that aviation turbine fuel (ATF), which constitutes approximately 40 percent of an airline’s operating expenses, has escalated dramatically since early March 2026 due to interruptions in supply.

The company noted that in India, this situation is exacerbated by elevated Excise Duty and VAT imposed on ATF in major metropolitan areas such as Delhi and Mumbai, thereby intensifying the pressure on operational costs for airlines. The new fuel surcharge structure will be rolled out in three distinct phases, impacting travel on all flights, including those operated by Air India Express.

Details of the Surcharge Implementation

The first phase of the surcharge will apply to all new bookings made from March 12. Under this initial phase, passengers booking domestic flights within India and trips to SAARC countries will encounter a new fuel surcharge of Rs 399, which was not previously in effect. Additionally, passengers on flights to West Asia and the Middle East will face a surcharge of USD 10. For routes servicing Southeast Asia, the surcharge will increase from USD 40 to USD 60, while flights destined for Africa will see an increment from USD 60 to USD 90. It was also specified that flights to and from Singapore will not incur a surcharge initially, but this will change from the start of Phase 1.

Phase 2 of the surcharge expansion will be enacted for bookings initiated from March 18. In this phase, those traveling to Europe will notice an increase in fuel surcharges from USD 100 to USD 125. Moreover, travelers heading to North America and Australia will see their surcharge climb from USD 150 to USD 200. A subsequent third phase, which will address routes to the Far East including Hong Kong, Japan, and South Korea, is yet to be announced.

Clarifications on Existing Bookings

Air India clarified that tickets issued before the implementation of the new surcharges will not incur these additional costs unless passengers opt to modify their travel dates or itineraries, which would necessitate re-evaluating fares.

The airline expressed its regret over the necessity to increase fuel surcharges but emphasized that this measure is driven by factors beyond its control. It cautioned that without such surcharges, it may become unfeasible for certain flights to cover their operational expenses, which could result in cancellations.

Furthermore, Air India indicated its intention to periodically review fuel surcharges and make necessary adjustments in response to the evolving situation. The announcement reflects the airline’s ongoing challenges amid fluctuating fuel prices and broader market dynamics.

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