Air India revises fuel-surcharge math as ATF prices double in one month

Air India will transition from flat fees to a distance-based grid for domestic flights and implement sharp increases for international flights from April 8.

Air India Ltd. has revised its fuel surcharge math for domestic and international flights, reacting to a volatile energy market that has seen global jet fuel prices nearly double in a single month.

Air India described the current landscape as “one of the most challenging fuel cost environments” airlines have faced in years. (Reuters)

The carrier, owned by Tata Sons Pvt. Ltd., will transition from flat fees to a distance-based grid for domestic flights and implement sharp increases for long-haul travel from 8 April, according to a statement on Tuesday (7 April 2026).

The move follows data from the International Air Transport Association (IATA) showing global average jet fuel prices surged to $195.19 per barrel for the week ending 27 March, up from $99.40 at the end of February.

The price spike has been exacerbated by a tripling of the “crack spread”—the refinery margin for turning crude into Aviation Turbine Fuel (ATF)—which jumped to $81.44 per barrel in late March.

Air India described the current landscape as “one of the most challenging fuel cost environments” airlines have faced in years.

Air India Domestic Flights

For flights within India, Air India is adopting a calibrated approach after the government capped domestic ATF price hikes at 25%. Effective 0901 Hrs IST on Wednesday, domestic surcharges will range from ₹299 for short hauls under 500 km to ₹899 for routes exceeding 2,000 km. The new rates apply to both full-service Air India and its low-cost arm, Air India Express.

Air India International Flights

International routes, which lack the domestic price mitigations, face steeper levies. The fuel surcharges for North America and Australia will reach $280 per passenger per sector. European routes, including the UK, will see a $205 surcharge effective 10 April.

“The fuel surcharges on international routes do not compensate for exponential increase in jet fuel prices,” the company said in a statement, noting it continues to “absorb a significant portion” of the costs.

Tickets issued prior to the effective dates will not be subject to the new fuel surcharge structure, unless passengers request itinerary changes. The airline said it will review the fuel surcharges periodically.