Air India to levy fuel surcharge: Full region-wise price hike list and implementation timeline
US-Iran war: Air India on Tuesday announced that it will impose fuel surcharges on both domestic and international flights. The airline cited the sharp increase in jet fuel prices due to the impact of the geopolitical situation in the Gulf region.
Aviation Turbine Fuel (ATF), which accounts for around 40% of an airline’s operating costs, has seen significant price increase since the beginning of March 2026 due to supply disruptions, Air India said in a press release.
The airline added: “In India, this pressure is further compounded by higher Excise Duty and VAT on ATF in major metropolitan cities such as Delhi and Mumbai, magnifying the cost impact and putting significant pressure on airline operating economics.”
Air India said fuel surcharges will be implemented in three phases. It will be valid for all flights, including those operated by its low-cost subsidiary Air India Express.
Which routes will be affected in Phase 1?
In the first phase, Air India will impose fuel surcharge on all new bookings for flights to and from the following regions from 12 March 2026. Here is the full list:
— Domestic India: Fuel surcharge will be charged for domestic flights ₹399, not previously implemented.
—SAARC: Fuel surcharge will also be charged for flights to and from SAARC countries ₹399 was not valid before.
— West Asia / Middle East: Flights to destinations in West Asia/Middle East, such as the UAE, will be subject to a $10 fuel surcharge, with no previous surcharge charged.
— Southeast Asia: The surcharge for these routes will increase from $40 to $60.
— Africa: It appears that the additional fee for flights to destinations in Africa will increase from $60 to $90.
Additionally, the airline added that flights to and from Singapore are not currently subject to fuel surcharges, but this will apply from phase 1 onwards.
Which routes will be affected in Phase 2?
In the second phase, Air India will impose fuel surcharge on all new bookings for flights to and from the following regions from 18 March 2026. Here is the full list:
– Europe: Fuel surcharges for flights to European countries will increase from $100 to $125.
– North America: For routes to North America, the surcharge will increase from $150 to $200.
— Australia: The surcharge for flights to Australia will increase to $200 from the current $150.
Phase three changes will be announced soon
The statement stated that the third phase, covering Far Eastern markets including Hong Kong, Japan and South Korea, will be announced in due course.
Air India also clarified that tickets issued before the imposition of the surcharge will not be subject to the new prices unless passengers request date or itinerary changes that require recalculation of the fare.
“Air India regrets the need to increase fuel surcharges in this manner but emphasizes that this is due to factors beyond its control. In the absence of such fuel surcharges, it is likely that some flights will not be able to cover the cost of operating and may have to be cancelled,” the airline said in a statement.
The airline said it would review its surcharges periodically and make appropriate adjustments as required, adding that Air India Express currently does not charge fuel surcharges on any of its flights.
