The Air India group on Tuesday announced a phased increase in fuel surcharges on both domestic and international flights, citing the sharp rise in jet fuel prices driven by geopolitical tensions in the Gulf region.
In a press release, the company said that since March, aviation turbine fuel (ATF), which accounts for roughly 40% of an airline’s operating costs, has seen a significant price jump due to supply interruptions.
The development comes nearly two weeks after the United States and Israel launched strikes on Iran, targeting its key military and naval forces, killing its former Supreme Leader, Ayatollah Ali Khamenei, who ruled the country for 36 years. The strikes prompted Tehran to retaliate, plunging the Middle East into a wider, renewed military confrontation.
The company further said that in India, the situation is further intensified by high excise duty and Value Added Tax (VAT) on ATF in major metro cities like Delhi and Mumbai, which increases operating costs and adds significant pressure on the airline’s finances.
Phased revision of fuel surcharges
Air India said that it will introduce the revised fuel surcharges in three phases. The changes will apply to travel on all flights, including those operated by Air India Express, as detailed below:
Phase I
Under Phase 1, the new fuel surcharges will apply to all bookings made from 12:00 AM IST on 12 March 2026.
In domestic India and SAARC, the company does not currently impose any fuel surcharge. However, after 12:00 AM on 12 March, the revised fuel surcharge would be ₹399. Similarly, in West Asia, the fuel surcharge was nil, but has been revised to $10.
In Southeast Asia, the current fuel surcharge is $40, which is now being revised to $60. In Africa, the current fuel surcharge of $60 is being increased to $90.
The company added that no fuel surcharge is currently applied to flights to/from Singapore, but it will apply from Phase 1.
Phase II
Under Phase 2, the revisions in fuel surcharge will be made applicable from 12 AM IST on 18 March 2026
In Europe, the current surcharge is $100 and will be $125 after revision.
In North America and Australia, the fuel surcharge, as of 10 March, is $150 and will be revised to $200.
Phase III
The group said that Phase 3 will apply to and from Far East markets, including Hong Kong, Japan, and South Korea. The details of the fuel surcharge revision will be announced later.
No fuel surcharge on tickets booked before
The Air India group also said that tickets issued before the above-mentioned dates will not incur any fuel surcharge, unless passengers request a date change, which will require a fare recalculation.
The group added that, while the fuel surcharge is due to external factors, it will be reviewed periodically to make “appropriate adjustments” as the situation demands. Additionally, it said that Air India Express does not levy any fuel surcharge on any of its flights.
