Air India to hike fuel surcharges amid West Asia conflict

The Air India group on Tuesday announced a phased increase in fuel surcharges across its domestic and international network

The Air India group on Tuesday announced a phased increase in fuel surcharges across its domestic and international network, citing a sharp rise in jet fuel prices driven by the conflict in West Asia.

Aviation turbine fuel (ATF), which accounts for nearly 40% of an airline’s operating costs, “has seen significant price escalation due to supply interruptions” since early March, the group said in a statement.

Aviation turbine fuel (ATF), which accounts for nearly 40% of an airline’s operating costs, “has seen significant price escalation due to supply interruptions” since early March, the group said in a statement.

Globally, jet fuel prices have roughly doubled since the conflict began, surging from around $85–90 a barrel to between $150 and $200.

Airlines in other regions have moved to pass on the cost too. Australia’s Qantas, Scandinavia’s SAS and Air New Zealand announced fare hikes or temporary surcharges, while Hong Kong Airlines said it would raise fuel surcharges by up to 35.2%.

Air India said the cost pressure was compounded in India by high excise duty and value-added tax on ATF in major cities such as Delhi and Mumbai, “magnifying the cost impact and placing substantial strain on airline operating economics”.

The revised surcharges will be rolled out in three phases across all flights, including those operated by Air India Express.

Under the first phase, effective for all new bookings from 0001 hours IST on March 12, a surcharge of ₹399 will apply on domestic and SAARC routes. West Asia and Middle East routes will attract a $10 surcharge. The surcharge on Southeast Asian routes will rise from $40 to $60, and on African routes from $60 to $90. A fuel surcharge will also be introduced on flights from Singapore, where none currently applies.

The second phase, effective for bookings from 0001 hours IST on March 18, will raise surcharges on long-haul routes — from $100 to $125 on European routes, and from $150 to $200 on both North American and Australian routes.

A third phase covering Far East markets, including Hong Kong, Japan and South Korea, is planned, with details to be announced.

Tickets issued before the respective phase dates will not attract the new surcharges unless passengers make itinerary or date changes that require a fare recalculation, the airline said.

“Air India regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control. Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled,” the statement said.

Air India said it would review surcharges periodically. Air India Express currently does not levy fuel surcharges on any of its flights.