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Air India Hikes Fuel Surcharges on Global Routes Amid Gulf Tensions

Air India has announced a phased increase in fuel surcharges across its domestic and international network, effective from March 12, 2026. The airline cites a steep rise in jet fuel prices driven by geopolitical tensions in the Gulf region as the primary cause. The new charges vary by region, ranging from Rs 399 for domestic and SAARC flights to $200 for routes to North America and Australia. The airline states that without these surcharges, some flights might become economically unviable and face cancellation.

Key Points: Air India Raises Fuel Surcharge on Domestic & International Flights

  • Phased surcharge rollout from March 12
  • Domestic/SAARC fee Rs 399
  • Long-haul routes up to $200
  • Prior tickets exempt unless changed
  • High ATF costs and taxes strain airlines
2 min read

Air India revises fuel surcharge on domestic and international routes amid Gulf tensions

Air India increases fuel surcharges in phases for domestic & international routes due to rising jet fuel prices from Gulf tensions. Details inside.

"necessitated by the steep rise in jet fuel prices - Air India"

New Delhi, March 10

Air India group on Tuesday announced a phased expansion of fuel surcharge on its domestic and international routes, saying the move is "necessitated by the steep rise in jet fuel prices" arising from the geopolitical situation in the Gulf region.

The new fuel surcharges are being implemented in three phases, covering travel on all flights, including those operated by Air India Express.

In Phase 1 (for all new bookings made from 0001 hours India Standard Time on March 12, 2026), the revised fuel surcharge will be Rs 399 for domestic flights; Rs 399 for SAARC region; $10 for the West Asia/Middle East region; $60 for Southeast Asia region; and $90 for the Africa region.

In phase 2, the revised fuel surcharge will be $125 for Europe; $200 for North America and $200 for Australia, said Air India.

"Phase 3 will apply to and from Far East markets, namely Hong Kong, Japan, and South Korea, which will be announced in due course," the airline added.

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, it noted.

Air India said it "regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control".

"Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled. Air India will review its surcharges periodically and make appropriate adjustments as the situation requires," 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 seen significant price escalation due to supply interruptions.

In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying cost the impact and placing substantial strain on airline operating economics, said Air India.

- IANS

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Reader Comments

S
Sarah B
While the surcharge is understandable given the global situation, the communication could be better. Announcing it in phases for different regions feels a bit confusing. Just be transparent about the total increase from the start. Hoping the situation in the Gulf stabilizes soon for everyone's sake.
A
Aditya G
The real issue is our dependence on imported fuel and the high taxes. ₹399 for domestic might seem small, but it adds up. For international students like me flying to the US, a $200 surcharge is huge! 😔 The government needs a long-term strategy for aviation fuel, not just reactive surcharges.
P
Priyanka N
At least they are being upfront about it and protecting existing bookings. I just booked tickets to Singapore last week for a holiday, so I'm safe. It's better than last-minute flight cancellations. Hope other airlines follow a similar transparent phased approach.
K
Karthik V
This will hit the middle class the hardest. Air travel had just become more accessible. Now with these surcharges and the existing high airport fees, train travel might become the preferred option again for domestic routes. The dream of affordable air travel for all seems to be slipping away.
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Michael C
From a business perspective, it's a necessary evil. If flights get cancelled because they can't cover costs, that's worse for everyone. The phased rollout for different regions is actually quite smart—it allows them to adjust based on route profitability and demand. Tough times call for tough measures.

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