Air India will implement a phased introduction of fuel surcharges on both domestic and international flights beginning March 12, 2026, in response to escalating jet fuel costs driven by geopolitical tensions in the Gulf region, the airline announced Tuesday.
The airline stated that aviation turbine fuel (ATF) accounts for approximately 40% of its operating costs and has experienced a significant price surge since early March due to supply disruptions. The added financial pressure is compounded in India by high excise duties and value-added tax (VAT) levied on ATF, particularly in major metropolitan areas like Delhi and Mumbai, according to the airline.
The first phase of the surcharge, effective for all new bookings made from March 12, will add ₹399 to fares for domestic flights and routes within the South Asian Association for Regional Cooperation (SAARC) region. This includes countries such as Nepal, Sri Lanka, and Bangladesh, which previously did not incur a fuel surcharge. Flights to West Asia will see a $10 surcharge added, where none existed before. Existing surcharges will as well increase; Southeast Asia routes will rise from $40 to $60, and Africa routes will increase from $60 to $90.
A second phase, commencing March 18, will target long-haul flights. The surcharge for flights to Europe will increase to $125, up from $100. Flights to North America and Australia will see a surcharge increase to $200, from $150. Air India indicated that a third phase, covering flights to Far East markets including Hong Kong, Japan, and South Korea, will be announced at a later date.
Air India clarified that tickets issued prior to the implementation dates of each phase will not be subject to the new surcharges, unless passengers request changes to their travel dates or itineraries that necessitate a fare recalculation. The fuel surcharges will apply to all flights operated by the Air India group, including those operated by Air India Express.
“Air India regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control,” the airline said in a statement. “Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled. Air India will review its surcharges periodically and make appropriate adjustments as the situation requires.”
