Flight Fares Update: Due to the situation in West Asia and rising jet fuel prices, Air India has decided to gradually increase fuel surcharges on domestic and international flights. The charges will be applicable to new bookings from March 12th. Surcharges will also increase on long-haul routes to Europe, the United States, and Australia.
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Flight Fares Update: Air India Group on Tuesday announced that it will increase fuel surcharges on its domestic and international flights in a phased manner. The company said the decision was taken due to the sharp increase in jet fuel prices due to the ongoing geopolitical situation in West Asia.
In a statement issued on March 10, the group said, “Aviation Turbine Fuel (ATF) prices have increased significantly since the beginning of March 2026. Fuel accounts for approximately 40 percent of an airline’s operating expenses. Supply disruptions have led to a sharp increase in its prices.”
The company further stated that this pressure is exacerbated in India because of the high excise duty and VAT on ATF in major metropolitan cities like Delhi and Mumbai. This further increases airlines’ operating costs and puts pressure on their financial balance.
According to the group, the new fuel surcharge will be implemented in three phases and will apply to all flights, including those operated by Air India Express.
Phase 1
- The first phase will be applicable to new bookings made from 12:01 am (IST) on March 12.
- A surcharge of ₹399 will be applicable on domestic flights within India and flights to SAARC countries.
- A surcharge of $10 will be applicable on flights to West Asia and the Middle East.
- The surcharge on flights to Southeast Asia will increase from $40 to $60.
- The surcharge on flights to Africa will increase from $60 to $90.
The airline stated that while there is currently no charge on flights to Singapore, a fuel surcharge will be applicable on flights arriving from Singapore starting in Phase 1.
Phase 2
The second phase will come into effect on March 18 at 12:01 a.m. This phase will further increase surcharges on long-haul international flights.
- The surcharge on flights to Europe will increase from $100 to $125.
- On flights to North America, it will increase from $150 to $200.
- The surcharge on flights to Australia will also increase from $150 to $200.
Phase 3
In the third phase, surcharges will be implemented on flights to Far East markets such as Hong Kong, Japan, and South Korea. Detailed information will be provided later.
The airline also clarified that passengers who booked tickets before these dates will not be subject to the new surcharge. However, if passengers change their travel dates or travel plans, a new fee may be charged upon fare renegotiation.
Air India stated that this decision was taken due to circumstances beyond its control. The company said in a statement, “We regret the need to increase the fuel surcharge in this manner, but it has become necessary due to reasons beyond our control. If this surcharge were not imposed, some flights would have struggled to cover operating costs and may have had to be cancelled.”
The company also said that it will review the situation from time to time and will adjust the fuel surcharge if necessary. Air India Express, meanwhile, does not currently charge a fuel surcharge on any of its flights.
