Air India tickets to get costlier as airline plans fuel surcharge amid West Asia crisis

In the first phase, Air India will levy a fuel surcharge of Rs 399 on domestic flight tickets starting March 12

Air India and Air India Express have announced a phase-wise expansion of fuel surcharges on both domestic and international routes as West Asia conflict triggers steep rise in jet fuel prices, the airline said in a statement on March 10.

The Tata group-owned airlines said the price of aviation turbine fuel (ATF) has seen a significant jump since early March. "Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40 percent of an airline’s operating costs, has seen significant price escalation due to supply interruptions," Air India said in a statement.

In the first phase, Air India will levy a fuel surcharge of Rs 399 on domestic flight tickets starting March 12. The surcharge will also apply to flights to SAARC destinations, the airline said in a statement on Tuesday.

For international routes, a surcharge of $10 will be imposed on West Asia flights. Charges on Africa routes will increase by $30 to $90, while services to Southeast Asia will see a hike of $20 to $60.

The revised surcharges will come into effect from March 12 across all routes, including flights to and from Singapore, which currently do not carry any fuel surcharge.

Fuel surcharge for Europe flights will rise to USD 125 from USD 100, and for North America flights, the same will increase from USD 150 to USD 200.

As per the statement, the fuel surcharge for Australia flights will increase from USD 150 to USD 200.

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

"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.

Since early March 2026, the statement that Aviation Turbine Fuel (ATF), which accounts for nearly 40 per cent of an airline's operating costs, has seen significant price escalation 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," it said.

For the avoidance of doubt, the statement said that tickets that have already been issued prior to the above times will not attract the new surcharge unless customers seek date or itinerary changes that require a recalculation of the fare.