Air India announced a phased increase in fuel surcharges across its domestic and international network, citing a sharp rise in jet fuel prices driven by the ongoing conflict in West Asia. The changes will be effective starting March 12, 2026.
Aviation turbine fuel, which constitutes nearly 40% of an airline’s operating costs, has seen significant price escalation due to supply interruptions. Globally, jet fuel prices have surged from approximately $85–90 a barrel to between $150 and $200 since the conflict began.
Airlines worldwide, including Qantas, SAS, and Air New Zealand, have also raised fares or added surcharges. In India, high excise duty and value-added tax on ATF in major cities like Delhi and Mumbai further compound the cost pressures.
Air India’s revised surcharges will be implemented in three phases. The first phase starts on March 12, 2026, with a ₹399 surcharge on domestic and SAARC routes. West Asia and Middle East routes will see a $10 surcharge. Southeast Asian routes will increase from $40 to $60, and African routes from $60 to $90.
The second phase, beginning March 18, 2026, will affect long-haul routes, raising surcharges from $100 to $125 on European routes and from $150 to $200 on North American and Australian routes. A third phase covering Far East markets is planned, with details forthcoming.
Air India expressed regret over the surcharge increases but emphasized their necessity due to external factors. The airline will review surcharges periodically, though Airline currently does not levy any fuel surcharges.
Published in SouthAsianDesk, March 11, 2026
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