Air India says new fuel surcharge essential to cover costs, avoid flight cancellations

The Air India group, including Air India Express, has announced a phased increase in fuel surcharges on domestic and international flights, starting March 12, 2026, due to rising jet fuel prices driven by geopolitical tensions in the Gulf region.
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Aviation turbine fuel (ATF) costs, which make up nearly 40% of airline operating expenses, have surged since early March, amplified in India by high Excise Duty and VAT in major cities like Delhi and Mumbai.
| Region | Current Surcharge | Increase | Revised Surcharge |
|---|---|---|---|
| Domestic India | Not applied | INR 399 | INR 399 |
| SAARC | Not applied | INR 399 | INR 399 |
| West Asia / Middle East | Not applied | USD 10 | USD 10 |
| Southeast Asia | USD 40 | USD 20 | USD 60 |
| Africa | USD 60 | USD 30 | USD 90 |
Note: Fuel surcharge for Singapore flights applies from Phase 1.
| Region | Current Surcharge | Increase | Revised Surcharge |
|---|---|---|---|
| Europe | USD 100 | USD 25 | USD 125 |
| North America | USD 150 | USD 50 | USD 200 |
| Australia | USD 150 | USD 50 | USD 200 |
Phase 3 will cover Far East markets — including Hong Kong, Japan, and South Korea — with details to be announced later.
Bookings made before the effective dates will not attract the new surcharge unless there are date or itinerary changes.
Air India stresses the surcharge is necessary to cover operating costs and prevent cancellations.
The airline will review surcharges periodically and adjust as the situation evolves.
Passengers are advised to check their bookings and fare details before travel and note that Air India Express currently applies no fuel surcharge on its flights.