Air India will introduce fuel surcharges on domestic and international tickets in phases starting March 12, as rising aviation turbine fuel (ATF) prices push up operating costs for airlines. The increase comes amid supply disruptions linked to the ongoing conflict in West Asia, which has driven global oil prices higher.
The airline said ATF, which accounts for nearly 40 percent of operating costs, has seen a sharp increase since early March due to supply constraints. In India, the burden is further amplified by high excise duty and value-added tax on aviation fuel in major metro cities such as Delhi and Mumbai.
Under the first phase, applicable to all new bookings made from March 12 onwards, Air India will introduce a fuel surcharge of ₹399 on domestic flights. The surcharge will also apply to routes to neighbouring South Asian countries in the SAARC region, including Nepal, Sri Lanka and Bangladesh, where no fuel surcharge was previously levied.
The airline will also introduce a new surcharge of $10 on flights to West Asia or the Middle East. These routes had not attracted any fuel surcharge earlier. On Southeast Asia routes, the surcharge will increase to $60 from $40 at present, while flights to Africa will see the surcharge rise to $90 from $60.
In the second phase, applicable to bookings made from March 18 onwards, Air India will raise surcharges on long-haul routes.
Flights to Europe: surcharge to increase to $125 from $100
Flights to North America and Australia: surcharge to rise to $200 from $150
The airline said a third phase covering Far East destinations such as Hong Kong, Japan and South Korea will be announced later.
Tickets issued before the respective implementation dates will not attract the revised surcharge unless passengers make changes to their travel date or itinerary that require a fare recalculation.
The surcharge will apply to all flights operated by the Air India group, including services run by Air India Express.
Air India said the increase was unavoidable given the surge in fuel costs. Without the surcharge, some routes could struggle to cover operating expenses and may face cancellations.
The airline added that the fuel surcharge will be reviewed periodically and adjusted depending on developments in fuel prices and supply conditions.
