Air India to levy fuel surcharge: Full region-wise price hike list and implementation timeline

US-Iran war: Air India on Tuesday announced that it will impose a fuel surcharge on both domestic and international routes. The airline cited a steep rise in jet fuel prices, driven by the geopolitical situation in the Gulf region.

In a press release, Air India said that Aviation Turbine Fuel (ATF), which accounts for nearly 40% of an airline's operating costs, has seen significant price escalation since early March 2026 due to supply disruptions.

The airline added: “In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the cost impact and placing substantial strain on airline operating economics.”

Air India said that the fuel surcharges will be implemented in three phases. It will apply to all flights, including those operated by its low-cost subsidiary, Air India Express.

Which routes will be impacted during Phase 1?

In the first phase, Air India will impose a fuel surcharge on all new bookings made from 12 March 2026 for flights operating to and from the following regions. Here's the full list:

— Domestic India: Flights in the domestic routes will attract a fuel surcharge of ₹399, which was not applied earlier.

— SAARC: Flights to and from SAARC countries will also witness a fuel surcharge of ₹399, which was not previously applicable.

— West Asia / Middle East: Flights to destinations in West Asia/ Middle East, such as the UAE, will attract a $10 fuel surcharge, up from no surcharge earlier.

— Southeast Asia: For these routes, the surcharge will rise from $40 to $60.

— Africa: Flights to destinations in Africa will witness the surcharge rise from $60 to $90 as well.

Additionally, the airline added that flights to and from Singapore currently do not incur a fuel surcharge, but it will apply from phase 1.

Which routes will be impacted during Phase 2?

In the second phase, Air India will impose a fuel surcharge on all new bookings made from 18 March 2026 for flights operating to and from the following regions. Here's the full list:

— Europe: Fuel surcharges on flights to European nations will increase from $100 to $125.

— North America: For routes to North America, the surcharge will increase from $150 to $200.

— Australia: Flights to Australia will see an increase in surcharge from the current rate of $150 to $200.

Third phase changes to be announced soon

A third phase, covering Far East markets including Hong Kong, Japan and South Korea, will be announced in due course, the release said.

Air India also clarified that tickets issued before the surcharge implementation will not be subject to the new rates unless passengers request date or itinerary changes that require a fare recalculation.

“Air India regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control. Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled,” the airline said in the statement.

The airline said it will review its surcharges periodically and make appropriate adjustments as required, adding that Air India Express currently does not levy fuel surcharges on any of its flights.