Jet Fuel Surge Forces Air India Surcharges

Air India is implementing a phased expansion of fuel surcharges on its domestic and international routes, citing a steep rise in jet fuel prices. This increase is driven by geopolitical events in the Gulf region impacting supply since early March 2026. The airline noted that aviation turbine fuel (ATF) accounts for nearly 40% of operating costs and its price escalation is compounded by high excise duties and VAT in major Indian cities.

The new surcharges will be rolled out in three phases, affecting all bookings made from March 12, 2026. Domestic flights and those to SAARC countries will see a new Rs399 ($4.34) surcharge. Flights to West Asia and the Middle East will incur a $10 surcharge, while Southeast Asia routes will rise from $40 to $60, and Africa routes from $60 to $90. Flights to and from Singapore will also begin attracting a surcharge from this phase.

Phase two, effective from March 18, 2026, will see increases for European routes from $100 to $125, and for North America and Australia from $150 to $200. A third phase for Far East markets will be announced later. Air India stated that tickets already issued will not be affected unless passengers request changes, and emphasized that these surcharges are necessary to cover operating costs and prevent flight cancellations.