Air India to Impose Fuel Surcharge: Regional Price Increases and Implementation Schedule

Air India Imposes Fuel Surcharge Due to Rising Jet Fuel Prices

Air India, India's flag carrier airline, has announced the imposition of a fuel surcharge on both domestic and international routes due to a significant rise in jet fuel prices. The airline cited the geopolitical situation in the Gulf region as a major factor contributing to the increase.

Aviation Turbine Fuel (ATF), which accounts for approximately 40% of an airline's operating costs, has seen a substantial price escalation since early March 2026 due to supply disruptions. The high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai have further amplified the cost impact.

Fuel Surcharge Implementation

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The fuel surcharges will be implemented in three phases. The first phase will apply to all new bookings made from 12 March 2026 for flights operating to and from the following regions:

• Domestic India: A fuel surcharge of ₹399
• SAARC: A fuel surcharge of ₹399
• West Asia / Middle East: A fuel surcharge of $10
• Southeast Asia: A fuel surcharge increase from $40 to $60
• Africa: A fuel surcharge increase from $60 to $90
• Singapore: A fuel surcharge will be applied from this phase

The second phase will apply to all new bookings made from 18 March 2026 for flights operating to and from the following regions:

• Europe: A fuel surcharge increase from $100 to $125
• North America: A fuel surcharge increase from $150 to $200
• Australia: A fuel surcharge increase from $150 to $200

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A third phase, covering Far East markets, including Hong Kong, Japan, and South Korea, will be announced in due course.

Tickets Issued Before Surcharge Implementation

Tickets issued before the surcharge implementation will not be subject to the new rates unless passengers request date or itinerary changes that require a fare recalculation. Air India Express, the airline's low-cost subsidiary, currently does not levy fuel surcharges on any of its flights.