Air India Group has announced further revisions to its fuel surcharge structure across both domestic and international routes, reflecting the sharp rise in aviation turbine fuel (ATF) prices globally. The revised charges will come into effect from April 8, 2026, with some international routes seeing changes from April 10, 2026. Low-cost airline IndiGo had hiked the fuel surcharge recently.
Domestic surcharge moves to distance-based structure
Following the Ministry of Petroleum & Natural Gas and Ministry of Civil Aviation’s decision to cap domestic ATF price hikes at 25%, Air India has shifted from a flat surcharge to a distance-based grid for domestic routes, including Air India Express flights.
Under the revised structure, flights covering distances of up to 500 km will attract a surcharge of ₹299 per passenger per sector. For distances between 501 and 1,000 km, the surcharge will be ₹399, while flights between 1,001 and 1,500 km will carry a surcharge of ₹549.
Passengers travelling between 1,501 and 2,000 km will pay ₹749, and those flying beyond 2,000 km will incur a surcharge of ₹899. These changes will be effective from 0901 hours IST on April 8, 2026.
Sharper increase in international fuel surcharge
In contrast to domestic routes, international operations have not benefited from similar price caps on ATF. As a result, Air India has implemented steeper revisions in fuel surcharges across global routes.
For SAARC destinations (excluding Bangladesh), the surcharge has been revised to $24 per passenger per sector. Flights to West Asia and the Middle East will now attract a surcharge of $50. For routes covering China and Southeast Asia (excluding Singapore), the surcharge will be $100, while flights to Singapore will carry a surcharge of $60. Passengers travelling to Africa will pay $130.
For long-haul routes, the surcharge is significantly higher, with Europe, including the United Kingdom, set at $205, while flights to North America and Australia will attract a surcharge of $280 per passenger per sector.
These revised charges for Europe, North America, and Australia will come into effect from 0001 hours IST on April 10, 2026, while others will be effective from 0901 hours IST on April 8, 2026.
Global fuel price surge drives increase
The surcharge revision comes against the backdrop of a sharp escalation in global jet fuel prices. According to the International Air Transport Association (IATA), the global average jet fuel price surged to USD 195.19 per barrel for the week ending March 27, 2026, nearly doubling from USD 99.40 at the end of February.
In addition to rising crude oil prices, refinery margins, or ‘crack spreads’, have also spiked significantly, increasing from USD 27.83 per barrel to USD 81.44 within three weeks. This dual impact has created one of the most challenging fuel cost environments for airlines in recent years.
Air India continues to absorb costs
Despite the revisions, Air India stated that the fuel surcharge adjustments do not fully offset the steep rise in international jet fuel prices. The airline continues to absorb a substantial portion of the increased operating costs.
Applicability and future review
The airline clarified that tickets issued prior to the effective dates will not attract the revised surcharge unless passengers make changes to their travel dates or itineraries that require fare recalculation.
Air India also noted that revisions for flights to and from Bangladesh and Far East destinations such as Japan, Hong Kong, and South Korea will be announced later, subject to regulatory approvals. The airline will continue to review its surcharge structure periodically and make adjustments as required.