Air travel is set to become more expensive after the Air India Group announced a new fuel surcharge on both domestic and international flights, following a sharp rise in aviation fuel prices.
According to the airline, all new bookings made from March 12 will attract a ₹400 fuel surcharge on domestic flights. International passengers will also face higher charges, with additional surcharges ranging from $10 to $50 depending on the destination.
The airline stated that the decision comes after a significant increase in Aviation Turbine Fuel (ATF) prices since early March 2026. ATF accounts for nearly 40% of an airline’s operating costs, making it one of the most critical factors affecting airline pricing and profitability.
The situation has been further intensified in India due to high excise duty and VAT on aviation fuel, especially in major metro cities such as Delhi and Mumbai, which has added additional financial pressure on airlines.
International Surcharge Details
Under the revised surcharge structure:
Passengers flying to West Asia will pay an additional $10 fuel surcharge.
Flights to Southeast Asia will see the surcharge increase from $40 to $60.
For Africa routes, the surcharge will rise from $60 to $90.
Starting March 18, further adjustments will apply to long-haul routes:
Flights to Europe will see the surcharge increase from $100 to $125.
Routes to North America and Australia will increase from $150 to $200.
Upcoming Phase for Far East Routes
The airline also confirmed that Phase 3 of the surcharge revision will apply to Far East destinations including Hong Kong, Japan, and South Korea. The exact surcharge details for these routes are expected to be announced at a later stage.
The Air India Group, which includes Air India Express, said the surcharge will be reviewed periodically depending on fuel price trends and market conditions.
Industry experts believe the move could influence pricing strategies across the aviation sector, as other airlines may adopt similar measures if ATF prices continue to rise.
