Air India Announces Fuel Surcharge Hike In Phases; Airfares To Rise From March 12
The Air India group has announced a phased implementation of fuel surcharges on both domestic and international flights, citing the sharp rise in aviation turbine fuel (ATF) prices. The airline said the increase in fuel costs is linked to the ongoing geopolitical situation in the Gulf region, which has disrupted supply and pushed global energy prices higher.
According to the airline, fuel accounts for nearly *40% of an airline’s operating expenses, and prices have surged significantly since early March 2026. In India, the situation is further complicated by **high excise duty and VAT on ATF, especially in major aviation hubs such as *Delhi and Mumbai, which adds to the operating burden for airlines.
To manage these rising costs, Air India said it will introduce revised fuel surcharges in *three phases, covering travel on all flights, including those operated by *Air India Express.
Phase 1: Changes From March 12
The first phase will apply to all new bookings made from March 12, 2026 (0001 hours IST).
Under this phase, the following fuel surcharges will apply:
- Domestic India flights: INR 399
- SAARC routes: INR 399
- West Asia/Middle East routes: USD 10
- Southeast Asia: Increase from USD 40 to USD 60
- Africa: Increase from USD 60 to USD 90
The airline also noted that flights to and from Singapore, which currently do not include a fuel surcharge, will start carrying the charge under Phase 1.
Phase 2: Changes From March 18
The second phase will come into effect for new bookings made from March 18, 2026 (0001 hours IST) and will mainly impact long-haul international routes.
The revised surcharges will be:
- Europe: Increase from USD 100 to USD 125
- North America: Increase from USD 150 to USD 200
- Australia: Increase from USD 150 to USD 200
Phase 3 Planned For Far East Routes
A third phase will cover routes to Far East destinations including *Hong Kong, **Japan, and *South Korea. Details of the surcharge for these routes will be announced later.
Existing Bookings Will Not Be Affected
The airline clarified that tickets booked before the specified dates will not be affected by the new fuel surcharge. However, passengers who make changes to their travel dates or itineraries that require fare recalculation may have to pay the updated surcharge.
Airline Cites Rising Fuel Costs
Air India said the surcharge increase has become necessary to offset rising fuel expenses caused by factors beyond the airline’s control. The carrier added that without such adjustments, some flights might struggle to cover operating costs and could even face cancellation.
The airline further noted that the fuel surcharge will be reviewed periodically and may be adjusted depending on fluctuations in fuel prices and developments in the geopolitical situation affecting global energy supply. ✈️
