Air India’s new fuel surcharge to push up ticket prices: When it starts and how much you will pay

Airfares are set to rise as the Air India group on Tuesday announced the introduction of fuel surcharge on domestic flight tickets and also hike the levy for international travel due to a steep rise in aviation turbine fuel (ATF) fuel prices amid the Middle East conflict.

The surcharge will apply to flights operated by both Air India and its low-cost arm Air India Express and is being introduced in three phases, the airline group said in a statement.

Under the first phase, applicable for bookings made from March 12, a fuel surcharge of ₹399 will be imposed on domestic India routes as well as flights to SAARC countries.

Flights to West Asia will attract a surcharge of USD 10.

On routes to Southeast Asia, the surcharge will rise to USD 60 from the current USD 40, while flights to Africa will see the charge increase to USD 90 from USD 60.

Currently, Air India Express does not levy any fuel surcharge, but the airline said the new charges will also apply to its flights under the revised structure.

In the second phase, beginning March 18, fuel surcharges will increase on long-haul routes, including Europe, North America and Australia.

Flights to Europe will attract a surcharge of USD 125, up from USD 100, while those to North America and Australia will see the surcharge rise to USD 200 from USD 150.

A third phase covering Far East markets, including Hong Kong, Japan and South Korea, will be announced later, the airline said.

“Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40% of an airline’s operating costs, has seen significant price escalation due to supply interruptions,” the airline said.

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

The revised fuel surcharge will apply only to new bookings made after the specified dates, while tickets already issued will not attract the additional charge unless customers make changes to their itinerary that require fare recalculation.

The airline said it will periodically review the surcharge and make adjustments depending on fuel price movements.

Without such surcharges, some flights could become economically unviable and may have to be cancelled, it added.

There was no announcement regarding fuel surcharges from IndiGo, SpiceJet and Akasa Air.