US-Israel, Iran conflict: Air India announces fuel surcharge on domestic, int’l routes; cites geopolitical reasons
Air India group on Tuesday announced a phased increase in fuel surcharges on both domestic and international flights, citing the sharp rise in jet fuel prices triggered by geopolitical tensions in the Gulf region.
Aviation turbine fuel (ATF), which accounts for approximately 40% of an airline’s operating costs, has seen a significant price increase since March due to supply disruptions, the company said in a press release.
This development comes nearly two weeks after the United States and Israel launched an attack on Iran, targeting key Iranian military and naval forces and killing former Supreme Leader Ayatollah Ali Khamenei, who ruled the country for 36 years. The attacks prompted Tehran to retaliate, thus plunging the Middle East region into a broader, renewed military conflict.
The company also said that the situation in India has worsened due to high excise duty and Value Added Tax (VAT) imposed on ATF in major metropolitan cities such as Delhi and Mumbai, which has increased operating costs and put significant pressure on the airline’s financial position.
Phased revision of fuel surcharges
Air India said it will implement the revised fuel surcharges in three phases. The changes will apply to all flights, including those operated by Air India Express, as detailed below:
Stage I
Under Phase 1, the new fuel surcharges will be applicable on all bookings made from 12:00 IST on 12 March 2026.
Within India and SAARC, the company does not currently impose any fuel surcharge. However, after 12:00 am on March 12, the revised fuel surcharge will be as follows: ₹399. Similarly, in West Asia, the fuel surcharge was zero but was revised to $10.
The current fuel surcharge in Southeast Asia is $40, currently being revised to $60. In Africa, the fuel surcharge, currently $60, is being increased to $90.
The company added that fuel surcharges are not currently applicable on flights to and from Singapore, but will be applicable from Phase 1 onwards.
Stage II
Under Phase 2, revisions in fuel surcharge will be effective from 12:00 IST on 18 March 2026.
The current surcharge in Europe is $100 and will be $125 after the revision.
In North America and Australia, the fuel surcharge is $150 as of March 10, but is being revised to $200.
Stage III
The group said Phase 3 will apply to and from far eastern markets and includes Hong Kong, Japan and South Korea. Details of the fuel surcharge revision will be announced later.
No fuel surcharge for previously booked tickets
The Air India group also said that no fuel surcharge will be imposed on tickets issued before the above-mentioned dates unless passengers request a date change that would require recalculation of the fare.
