US-Israel-Iran conflict: Air India to add fuel surcharge on domestic, international routes amid geopolitical tensions
Air India will introduce higher fuel surcharges on domestic and international flights in three phases starting 12 March 2026, citing rising jet fuel prices amid Gulf tensions. The surcharge hike will apply across regions, including SAARC, Europe, and North America
The Air India group on Tuesday announced a phased increase in fuel surcharges on both domestic and international flights, citing the sharp rise in jet fuel prices driven by geopolitical tensions in the Gulf region.
In a press release, the company said that since March, aviation turbine fuel (ATF), which accounts for roughly 40% of an airline's operating costs, has seen a significant price jump due to supply interruptions.
The development comes nearly two weeks after the United States and Israel launched strikes on Iran, targeting its key military and naval forces, killing its former Supreme Leader, Ayatollah Ali Khamenei, who ruled the country for 36 years. The strikes prompted Tehran to retaliate, plunging the Middle East into a wider, renewed military confrontation.
The company further said that in India, the situation is further intensified by high excise duty and Value Added Tax (VAT) on ATF in major metro cities like Delhi and Mumbai, which increases operating costs and adds significant pressure on the airline's finances.
Phased revision of fuel surcharges
Air India said that it will introduce the revised fuel surcharges in three phases. The changes will apply to travel on all flights, including those operated by Air India Express, as detailed below:
Phase I
Under Phase 1, the new fuel surcharges will apply to all bookings made from 12:00 AM IST on 12 March 2026.
In domestic India and SAARC, the company does not currently impose any fuel surcharge. However, after 12:00 AM on 12 March, the revised fuel surcharge would be ₹399. Similarly, in West Asia, the fuel surcharge was nil, but has been revised to $10.
In Southeast Asia, the current fuel surcharge is $40, which is now being revised to $60. In Africa, the current fuel surcharge of $60 is being increased to $90.
The company added that no fuel surcharge is currently applied to flights to/from Singapore, but it will apply from Phase 1.
Phase II
Under Phase 2, the revisions in fuel surcharge will be made applicable from 12 AM IST on 18 March 2026
In Europe, the current surcharge is $100 and will be $125 after revision.
In North America and Australia, the fuel surcharge, as of 10 March, is $150 and will be revised to $200.
Phase III
The group said that Phase 3 will apply to and from Far East markets, including Hong Kong, Japan, and South Korea. The details of the fuel surcharge revision will be announced later.
No fuel surcharge on tickets booked before
The Air India group also said that tickets issued before the above-mentioned dates will not incur any fuel surcharge, unless passengers request a date change, which will require a fare recalculation.
The group added that, while the fuel surcharge is due to external factors, it will be reviewed periodically to make "appropriate adjustments" as the situation demands. Additionally, it said that Air India Express does not levy any fuel surcharge on any of its flights.
About the Author
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
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