Airfares on Air India flights are set to become more expensive, with the airline announcing revised fuel surcharges across domestic and international routes amid a sharp spike in global jet fuel prices due to the ongoing US-Iran war.
The Tata Group-owned carrier said the new surcharge structure will come into effect from April 8 for domestic routes and April 10 for key international sectors. The move follows a steep rise in aviation turbine fuel (ATF) prices, which has significantly increased operating costs for airlines worldwide.
Distance-based surcharge for domestic flyers
For domestic travel, Air India has shifted from a flat fuel surcharge to a distance-based model. Passengers flying short-haul routes (0–500 km) will now pay an additional ₹299 per sector, while those on longer routes exceeding 2,000 km will be charged up to ₹899.
The revision aligns with the government’s decision to cap the increase in domestic ATF prices at 25%, offering partial relief to airlines and passengers. However, even this moderated hike is expected to push up ticket prices across most sectors.
| Distance Band (km) | Revised Fuel Surcharge | Effective From |
|---|---|---|
| 0–500 | INR 299 | 0901 Hrs IST of 08 April 2026 |
| 501–1000 | INR 399 | |
| 1001–1500 | INR 549 | |
| 1501–2000 | INR 749 | |
| 2000+ | INR 899 |
International fares to see sharper rise
The impact is expected to be far more pronounced on international routes, where no such price moderation exists. Air India has introduced significantly higher surcharges depending on region - ranging from $24 for nearby SAARC destinations to as high as $280 for long-haul routes such as North America and Australia.
{{/usCountry}}The impact is expected to be far more pronounced on international routes, where no such price moderation exists. Air India has introduced significantly higher surcharges depending on region - ranging from $24 for nearby SAARC destinations to as high as $280 for long-haul routes such as North America and Australia.
{{/usCountry}}| Region | Revised Fuel Surcharge | Effective From |
|---|---|---|
| SAARC (excluding Bangladesh) | USD 24 |
|
| West Asia/Middle East | USD 50 | |
| China and Southeast Asia (excluding Singapore) | USD 100 | |
| Singapore | USD 60 | |
| Africa | USD 130 | |
| Europe (including the United Kingdom) | USD 205 | 0001 Hrs IST of 10 April 2026 |
| North America | USD 280 | |
| Australia | USD 280 |
The airline said it continues to absorb a portion of the increased fuel costs, indicating that fares could have risen even further without this buffer.
Fuel prices nearly double globally
According to data from International Air Transport Association (IATA), global jet fuel prices surged to $195.19 per barrel by late March, nearly doubling from around $99 just weeks earlier. Refining margins, or “crack spreads”, have also tripled in a short span, worsening the cost burden on carriers.
Industry-wide ripple effect
Air India’s move comes days after IndiGo revised its own fuel surcharge structure, increasing charges on both domestic and international routes. Airlines have been forced to pass on at least part of the cost increase to passengers, as fuel typically accounts for about 40% of operating expenses.
The surge in fuel prices has been linked to geopolitical tensions, including disruptions around the Strait of Hormuz, a critical global oil transit chokepoint. The resulting uncertainty has driven up crude oil prices and, in turn, ATF costs.