Air India Announces New Fuel Surcharge as Jet Fuel Prices Surge

Travellers booking flights with the Air India group may notice slightly higher fares starting this week. The airline has announced a gradual rollout of fuel surcharges on several domestic and international routes, following a sharp rise in jet fuel prices.

The decision comes as aviation turbine fuel costs continue climbing due to supply disruptions linked to the ongoing geopolitical tensions in the Gulf region.

For airlines, fuel is not a small expense. It typically accounts for nearly 40 per cent of operating costs, so even a modest increase in fuel prices can quickly affect ticket prices.

Why Air India Is Adding a Fuel Surcharge

Since early March 2026, jet fuel prices have surged due to supply interruptions. Airlines worldwide have been feeling the pressure.

In India, the situation is even more complicated. Aviation fuel is subject to high excise duty and state VAT, especially in major hubs like Delhi and Mumbai. These taxes push fuel costs even higher for airlines operating from these airports.

What this really means is simple. If airlines absorb the full increase, some routes may become too expensive to operate. Adding a surcharge helps them cover those rising costs without cancelling flights.

Phase 1: New Fuel Surcharges From 12 March 2026

The first phase begins 12 March 2026 and applies to new bookings only. Existing tickets remain unchanged unless passengers modify their travel dates or routes.

Here is what passengers can expect.

Domestic and Short-Haul Routes

Region	New Fuel Surcharge
Domestic India	INR 399
SAARC countries	INR 399
West Asia / Middle East	USD 10

Other International Routes

Region	Previous Surcharge	Increase	New Surcharge
Southeast Asia	USD 40	USD 20	USD 60
Africa	USD 60	USD 30	USD 90

Flights to and from Singapore previously did not include a fuel surcharge. Starting with Phase 1, they will now carry the same surcharge applied to other Southeast Asian routes.

Phase 2: Additional Changes From 18 March 2026

A second round of increases will take effect on 18 March 2026 for long-haul routes.

Region	Previous Surcharge	Increase	New Surcharge
Europe	USD 100	USD 25	USD 125
North America	USD 150	USD 50	USD 200
Australia	USD 150	USD 50	USD 200

These surcharges will apply to flights operated by both Air India and its low-cost subsidiary Air India Express.

Phase 3: Changes Planned for East Asia

The airline has also confirmed that a third phase is coming. This will apply to routes connecting India with key East Asian destinations such as:

• Hong Kong
• Japan
• South Korea

Details and exact surcharge amounts for these markets will be announced later.

What This Means for Travellers

If you already booked your ticket before the announced dates, your fare will remain unchanged.

However, if you later modify your travel date or route, the ticket price may be recalculated, and the new surcharge could apply.

For anyone planning international travel in the coming months, the key takeaway is straightforward. Ticket prices may rise slightly as airlines react to higher fuel costs.

Will the Fuel Surcharge Stay?

Airlines rarely keep surcharges permanently. Air India says it will review the fuel surcharge regularly and adjust it depending on how fuel prices move in the coming months.

If jet fuel prices fall, the surcharge could also be reduced or removed.

For now, travellers booking flights after 12 March 2026 should expect a small additional charge built into their fares.