Air India group has revealed plans to gradually increase fuel surcharges on both domestic and international flights due to a significant surge in jet fuel prices linked to the Gulf region’s geopolitical situation. The new surcharges will be rolled out in three phases, covering all flights, including those operated by Air India Express. In the initial phase starting March 12, 2026, the revised fuel surcharge will range from Rs 399 for domestic flights to $90 for the Africa region.
The subsequent phases will see higher surcharges, with $125 for Europe, $200 for North America, and $200 for Australia. Air India also mentioned that Phase 3 adjustments for Far East markets like Hong Kong, Japan, and South Korea will be announced later. Tickets issued before the implementation date will not be subject to the new surcharge unless changes necessitate fare recalculations. The airline clarified that the surcharge increase is due to external factors beyond its control and is crucial to covering operational costs.
Air India expressed regret over the surcharge hike but emphasized its necessity to prevent flight cancellations resulting from unsustainable operating costs. The airline assured customers that it would regularly review and adjust the surcharges as required by the prevailing circumstances. The escalating prices of aviation turbine fuel (ATF) since early March 2026, compounded by high Excise Duty and VAT in metro cities like Delhi and Mumbai, have significantly impacted airlines’ operational economics.
