Air India, Air India Express to impose fuel surcharge on tickets amid rising jet fuel costs; airfares likely to rise

(File photo)

• Air India to add Rs 399 fuel surcharge on domestic flights
• International surcharges to rise, varying by destination
• Increase due to higher jet fuel prices amid Gulf region tensions

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The Air India Group has announced a phased rollout of fuel surcharges across its domestic and international network, citing a sharp rise in aviation turbine fuel prices driven by geopolitical tensions in the Gulf region.

Airfares are set to increase after Air India and Air India Express decided to levy a fuel surcharge of Rs 399 on each domestic flight ticket from March 12. The group will also increase charges on international bookings due to the surge in jet fuel prices amid the ongoing Middle East conflict.

The airline said the revised fuel surcharge will be introduced in phases.

Regretting the need for the additional charge, Air India said that without such measures, "it is likely that some flights would be unable to cover operating costs and would have to be cancelled".

Phase 1 surcharge rollout

In the first phase, starting March 12, a fuel surcharge of Rs 399 per domestic ticket will be imposed. The same charge will also apply to SAARC flights, according to a statement issued on Tuesday.

For international routes, the surcharge will vary by destination:

West Asia: USD 10.

Africa: Increased by USD 30 to USD 90.

Southeast Asia: Increased by USD 20 to USD 60.

The changes will also apply to flights to and from Singapore, which currently do not have any fuel surcharge.

Phase 2 from March 18

In the second phase, beginning March 18, the airline will raise fuel surcharges on long-haul routes:

Europe: Increased from USD 100 to USD 125.

North America: Increased from USD 150 to USD 200.

Australia: Increased from USD 150 to USD 200.

At present, Air India Express does not levy any fuel surcharge on its flights.

Jet fuel prices behind the move

"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 airline said.

Since early March 2026, Aviation Turbine Fuel (ATF)—which accounts for nearly 40 per cent of an airline’s operating costs—has witnessed significant price escalation due to supply disruptions.

The airline also pointed to the domestic tax structure. "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.

The airline clarified 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.

Meanwhile, no similar announcement has been made by other carriers such as IndiGo, SpiceJet and Akasa Air.