Important Update: Phased implementation of fuel surcharge

Air India group today announced a phased expansion of a fuel surcharge on its domestic and international routes, necessitated by the steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region.

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.

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.

The new fuel surcharges are being implemented in three phases, covering travel on all flights, including those operated by Air India Express¹, as follows:

Phase 1 (for all new bookings made from 0001 hours India Standard Time on 12 March 2026): 

Phase 2 (for all new bookings made from 0001 hours India Standard Time on 18 March 2026):

Phase 3 will apply to and from Far East markets, namely Hong Kong, Japan, and South Korea, which will be announced in due course.

For the avoidance of doubt, bookings that have already been made prior to the above times will not attract the new surcharge unless customers seek date or itinerary changes that require a recalculation of the fare.

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.

Air India will review its surcharges periodically and make appropriate adjustments as the situation requires.

¹Air India Express currently does not levy fuel surcharges on any of its flights.