India’s national carrier Air India has announced that it will introduce a fuel surcharge on both domestic and international flights following a sharp rise in aviation fuel prices. The airline stated that the decision has been taken due to the increasing cost of Aviation Turbine Fuel (ATF), which is one of the biggest operational expenses for airlines.
According to the airline, ATF currently accounts for nearly 40 percent of an airline’s total operating cost. Since early March 2026, fuel prices have surged significantly due to supply disruptions and geopolitical tensions in the Gulf region. This sudden spike in fuel costs has created financial pressure on airlines operating both domestic and international routes.
Air India also highlighted that the situation in India is further complicated by high excise duty and VAT on aviation fuel, especially in major metro cities like Delhi and Mumbai. These taxes increase operational costs for airlines, making it difficult to maintain stable ticket prices without introducing additional charges.
To manage the rising fuel costs, Air India confirmed that the surcharge will be implemented in three phases and will apply to all flights, including those operated by its low-cost subsidiary Air India Express.
Phase 1: Surcharge Effective From 12 March 2026
The first phase of the fuel surcharge will apply to all new flight bookings made from March 12, 2026. This phase will affect several domestic and international routes.
For domestic flights within India, passengers will now have to pay a ₹399 fuel surcharge, which was not previously applied on these routes.
Flights to and from SAARC countries will also attract the same ₹399 surcharge. Earlier, these routes did not include a fuel surcharge.
For flights to West Asia and Middle East destinations, including countries such as the United Arab Emirates, a $10 fuel surcharge will now be applied where there was previously no additional fee.
Passengers travelling to Southeast Asia will see the fuel surcharge increase from $40 to $60, while flights to African destinations will experience a rise from $60 to $90.
In addition, Air India confirmed that flights to and from Singapore, which currently do not include a fuel surcharge, will also start attracting the new fee from the first phase.
Phase 2: Changes Starting From 18 March 2026
The second phase of the fuel surcharge adjustment will come into effect for new bookings made from March 18, 2026.
Flights to European destinations will see the surcharge increase from $100 to $125.
Passengers travelling to North America will experience a bigger hike, with the surcharge rising from $150 to $200.
Similarly, routes connecting India to Australia will also see the fuel surcharge increase from $150 to $200.
Phase 3: Details To Be Announced
Air India stated that a third phase will soon be introduced, which will cover Far East destinations such as Hong Kong, Japan and South Korea. The airline said that detailed information about these changes will be announced in the coming days.
Important Update for Existing Bookings
The airline clarified that tickets issued before the implementation of the surcharge will not be affected by the new charges. However, if passengers choose to change their travel date or itinerary, the ticket may be recalculated and the new surcharge could apply.
Air India expressed regret over introducing the fuel surcharge but explained that the move is necessary due to factors beyond the airline’s control. According to the airline, without these additional charges, some flights might not be able to cover operational costs, which could eventually lead to service disruptions or cancellations.
The airline also stated that it will review the surcharge periodically depending on fuel price trends and make adjustments whenever required.