Air India To Introduce Fuel Surcharge From March 12 Amid Rising Jet Fuel Costs

Airfares are set to rise after Air India and Air India Express decided to levy a fuel surcharge on flight tickets following a steep increase in jet fuel prices amid the Middle East conflict.

In the first phase, a fuel surcharge of INR 399 per domestic flight ticket will be introduced from March 12, according to a statement issued on Tuesday. The surcharge will also apply to SAARC flights.

The new charges will be implemented in a phased manner.

International Routes To See Varied Surcharge Increases

Fuel surcharges will also rise for several international routes. 

• For West Asia flights, the surcharge will be USD 10.

• For Africa services, the surcharge will increase by USD 30 to USD 90.

• For Southeast Asia routes, the charge will rise by USD 20 to USD 60. 

These changes will also come into effect from March 12, including for flights to and from Singapore, where no fuel surcharge is currently levied.

Further Hikes Planned For Long-Haul Routes From March 18

In the second phase, beginning March 18, Air India will increase fuel surcharges on long-haul routes.

• Europe flights: surcharge will rise from USD 100 to USD 125

• North America flights: surcharge will increase from USD 150 to USD 200

• Australia flights: surcharge will also rise from USD 150 to USD 200

• Airline cites rising fuel prices and operating costs

Air India said the surcharge expansion was necessitated by the sharp increase in aviation fuel prices linked to the geopolitical situation in the Gulf region.

“Air India group today announced a phased expansion of a fuel surcharge on its domestic and international routes, necessitated by the steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region,” the statement said.

The airline added that Aviation Turbine Fuel (ATF), which accounts for nearly 40 per cent of an airline’s operating costs, has seen a significant price escalation since early March 2026 due to supply interruptions.

“In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the cost impact and placing substantial strain on airline operating economics,” the statement added.

Airline Says Surcharge Necessary To Maintain Operations

Expressing regret over the move, Air India said the surcharge was necessary to sustain operations.

Without the surcharge, the airline said, “it is likely that some flights would be unable to cover operating costs and would have to be cancelled.

Existing Bookings Unaffected

The airline clarified that tickets issued before the surcharge takes effect will not attract the additional charge, unless passengers request changes to travel dates or itineraries that require a fare recalculation.

Currently, Air India Express does not levy fuel surcharges on any of its flights.

There was no announcement regarding fuel surcharges from IndiGo, SpiceJet and Akasa Air.

FAQs

1. When will Air India introduce the fuel surcharge? 

Air India will introduce the fuel surcharge from March 12, 2026 on domestic and international tickets. 

2. How much is the fuel surcharge on domestic flights? 

Domestic tickets will carry a surcharge of INR 399 per flight ticket. 

3. Why is Air India adding a fuel surcharge? 

The surcharge has been introduced due to rising Aviation Turbine Fuel (ATF) prices linked to geopolitical tensions in the Middle East. 

4. Which international routes will see higher surcharges? 

Routes to West Asia, Southeast Asia, Africa, Europe, North America and Australia will see phased surcharge increases. 

5. Will existing bookings be affected? 

Tickets issued before the surcharge takes effect will not be impacted unless passengers change their travel dates or itinerary.