Air India has announced a phased fuel surcharge on domestic and international routes amid a sharp rise in jet fuel prices linked to West Asia crisis. Air India has described this move as unavoidable and attributed the factors behind the increase in rate beyond its control. It said that without the surcharge revision, some flights would face cancellations as it would become commercially unviable. The decision has been taken because of sharp rise in aviation turbine fuel (ATF) prices since March 2026, triggered by supply disruptions in Middle East.
Surcharge increase in three phases
Phase 1: Domestic flights and route to South Asian Association for Regional Cooperation (SAARC) will see a price rise by Rs 399 per ticket.
Phase 2: For flights to West Asia, the fuel surcharge will be $10; for flights to Africa, it would be raised by $30, and for Southeast Asia flights it would be raised by $20.
Phase 3: The surcharge will be extended to far East destinations such as Japan, Hong Kong and South Korea, details for the same will be provided later.
Rising fuel prices
Since the war begun on February 28 in the Middle East, ATF prices have risen sharply due to supply disruptions linked to closure of Strait of Hormuz amid ongoing war in Middle East. Aviation turbine fuel nearly accounts for approximately 40 % of of an airline’s operating cost. Major impact can be seen in India because of ATF in India attracts higher excise duty and VAT, especially in major metro cities like Delhi and Mumbai, which further increases the cost burden for airlines.
No change in existing ticket fares
The airline clarified that existing tickets will not be affected, unless passenger make changes to their travel dates or itineraries that requires recalculating the fares. The fuel prices will affect the flight charges, said the airline. Recently, the domestic LPG and commercial fuel rates have also increased due to reduced supply from Middle East amid ongoing geopolitical tensions.
