The Air India group has announced a phased implementation of fuel surcharges on both domestic and international flights, citing the sharp rise in aviation turbine fuel (ATF) prices linked to the ongoing geopolitical situation in the Gulf region. The airline said the move has become necessary as fuel costs, which make up nearly 40% of an airline’s operating expenses, have increased significantly since early March 2026 due to supply disruptions. In India, the impact of rising fuel prices is further intensified by high Excise Duty and VAT on ATF, particularly in major aviation hubs such as Delhi and Mumbai. According to the airline, these additional taxes are putting considerable pressure on operating costs. To manage the rising expenses, Air India said it will introduce the revised fuel surcharge in three phases, covering travel on all flights, including those operated by Air India Express.Read more: UAE flights update: Emirates, Etihad run reduced schedules as airspace disruptions continue; travellers asked to check flight status
Phase 1: Changes from March 12
The first phase will apply to all new bookings made from 12 March 2026 (0001 hours IST).Under this phase: Domestic India flights: Fuel surcharge of INR 399 will be introducedSAARC routes: Fuel surcharge of INR 399West Asia / Middle East: Fuel surcharge of USD 10Southeast Asia: Increase from USD 40 to USD 60Africa: Increase from USD 60 to USD 90 The airline also said that flights to and from Singapore, which currently do not carry a fuel surcharge, will start including the charge under Phase 1.Read more: Drone incident near Dubai International Airport leaves four injured; air traffic operating as normal
Phase 2: Changes from March 18
The second phase will take effect for new bookings made from 18 March 2026 (0001 hours IST) and will impact long-haul routes. The revised surcharges will be: Europe: Increase from USD 100 to USD 125North America: Increase from USD 150 to USD 200Australia: Increase from USD 150 to USD 200
Phase 3 planned for far east routes
Air India said a third phase will cover routes to Far East destinations, including Hong Kong, Japan, and South Korea. Details of the surcharge for these routes will be announced later.
Existing bookings not affected
The airline clarified that tickets already booked before the specified dates will not attract the new fuel surcharge. However, if passengers make changes to their travel dates or itineraries that require recalculation of the fare, the updated surcharge may apply.
Airline cites rising costs
Air India said the surcharge increase is necessary to offset rising fuel expenses caused by factors beyond the airline’s control. The airline noted that without such adjustments, some flights might not be able to cover their operating costs and could face potential cancellation. The carrier added that the fuel surcharge will be reviewed periodically and may be adjusted depending on changes in fuel prices and the broader geopolitical situation affecting global energy supply.
