Summary of this article
Air India adds fuel surcharge from March 12.
Rising ATF prices increase airline operating costs.
Long-haul routes face higher surcharge from March 18.
As of March 12, 2026, flights with Air India will be more expensive, as the airline is about to introduce a fuel surcharge on both international and domestic tickets. The surcharge is being levied as a response to the sharp rise in the aviation turbine fuel (ATF) prices. The prices for the same have been running high due to geopolitical tensions in the Gulf region and disruptions related to global energy supplies.
One of the major expenses for airlines is fuel costs, which account for nearly 40 per cent of their operating costs. Recently, ATF prices have increased significantly due to supply disruptions and rising oil prices. In India, these costs are further increasing because of rising excise duty and VAT on aviation fuel. This combination has placed a considerable financial pressure on airlines, which forces them to pass some of the increased costs on to the passengers.
Fuel Surcharge In The First Phase
As a way to cope with these rising costs, Air India has decided to introduce a fuel surcharge in three phases. The first phase begins with bookings made from March 12, 2026. In this phase, passengers will bear the following costs as per geographical factors,
Domestic India: INR 399
SAARC: INR 399
West Asia / Middle East: USD 10
Southeast Asia: USD 60 (This charge increased from USD 40)
Africa: USD 90 (This charge has increased from USD 60)
Fuel Surcharge In The Second Phase
The second phase of this surcharge begins on March 18, 2026. During this, the long-haul international routes will see further increases. The following changes in the routes can be seen,
Europe: USD 125 (Increased from USD 100)
North America: USD 200 (Increased from USD 150)
Australia: USD 200 (Increased from USD 150)
There’s a third phase for this, which covers destinations in the far east such as Japan, Hong Kong, and South Korea. This phase will be announced in due course.
Travellers who booked their tickets before the implementation of surcharges will not be charged as per the revised rates. “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,” as stated in the press statement.
The airline has stated that the decision to increase the fares through the fuel surcharges is necessary due to circumstances that are beyond anyone’s control. Without such measures, operating flights of certain distances would be financially straining, which could also lead to cancellations.
Air India has also said that the surcharge will be reviewed periodically, since it depends on fuel prices, market conditions and geopolitical situations. Until fuel prices stabilise, passengers may continue to experience higher prices for ticket bookings of both domestic and international nature.
