Air India Raises Fuel Surcharge on Domestic and International Flights Amid Gulf Tensions
NEW DELHI — Air India on Tuesday announced a phased increase in fuel surcharges on both domestic and international routes, citing a sharp rise in jet fuel prices linked to geopolitical tensions in the Gulf region.
The airline said the revised surcharges will be introduced in three stages and will apply to all flights across the Air India group, including those operated by Air India Express.
Under Phase 1, which will apply to all new bookings made from 12:01 a.m. India Standard Time on March 12, 2026, the revised fuel surcharge will be Rs 399 for domestic flights and routes within the SAARC region. The surcharge will be $10 for flights to the West Asia and Middle East region, $60 for Southeast Asia, and $90 for Africa.
In Phase 2, the surcharge will increase to $125 for flights to Europe and $200 for both North America and Australia.
Air India said a third phase will apply to routes serving Far East markets, including Hong Kong, Japan, and South Korea, with details to be announced later.
Tickets issued before the new surcharge takes effect will not be affected unless travelers make changes to their itinerary or travel dates that require the fare to be recalculated, the airline said.
Air India said the increase was unavoidable due to factors beyond the airline’s control.
“Air India regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control,” the airline said in a statement.
The company warned that without such adjustments some routes could become financially unsustainable.
“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,” the airline added.
Since early March 2026, aviation turbine fuel prices have risen sharply due to supply disruptions linked to tensions in the Gulf region.
Jet fuel accounts for nearly 40 percent of an airline’s operating costs, making price increases particularly challenging for carriers.
In India, the pressure is compounded by high excise duties and value-added taxes on aviation turbine fuel in major metro cities such as Delhi and Mumbai, which further raise operating costs for airlines, Air India said. (Source: IANS)
