Air India revises fuel surcharge: The impact on flight tickets prices

New Delhi: Air India on Tuesday announced to increase its fuel surcharge structure across domestic and international routes. The Tata Group-owned airline said the Union Ministry of Petroleum & Natural Gas’ and Ministry of Civil Aviation’s has capped domestic Aviation Turbine Fuel (ATF) price hike at 25%. Air India said taking the ATF hike into account, it has transitioned from a flat domestic surcharge to a distance‑based grid as follows, effective April 8, 2026 (including on Air India Express flights):

Distance Band (km) Revised
Fuel Surcharge
Effective From
0–500 INR 299 0901 Hrs IST of 08 April 2026
501–1000 INR 399
1001–1500 INR 549
1501–2000 INR 749
2000 INR 899

Air India Fuel Surcharge on International Routes

Air India said as there is no mitigations on international ATF prices, it is implementing more significant changes to fuel surcharges for the international flights.

The International Air Transport Association (IATA) data stated that the global average jet fuel price jumped to USD 195.19 per barrel for the week ending 27 March 2026, while it stood at USD 99.40 at the end of February, a record surge of close to 100%.

The West Asia crisis has severely impacted the oil supplies from the Gulf countries. The shortage of fuel has led to a surge in fuel prices worldwide.

Air India justified its decision, saying that “the fuel surcharges on international routes do not compensate for the exponential increase in jet fuel prices for international flights. Air India continues to absorb a significant portion of this increased cost”.

Region Revised
Fuel Surcharge
Effective From
SAARC
(excluding Bangladesh)
USD 24

0901 Hrs IST of
08 April 2026

West Asia/Middle East USD 50​
China and Southeast Asia
(excluding Singapore)
USD 100
Singapore USD 60
Africa USD 130​
Europe
(including the United Kingdom)
USD 205 0001 Hrs IST of
10 April 2026
North America USD 280
Australia USD 280

The Tata Group-headed airline said the revised fuel surcharge on flights to and from Bangladesh and Far East countries, such as South Korea, Japan, and Hong Kong will be released in due course subject to the requisite regulatory approvals.

The airline will not be levying the increased fuel surcharge on the flight tickets that have already been issued. However, if customers seek date or itinerary changes that require a recalculation of the fare, AI will impose the new charges

Air India will review its surcharges periodically and make appropriate adjustments as the situation requires, it said in its statement