Air India group announces revisions to fuel surcharge
Air India-3
The airline moves from flat domestic surcharge to distance-based system and for international surcharges depends on per passenger and per sector.
Air India group announced further revisions to its fuel surcharge structure across domestic and international routes.
Following the government's decision to cap the domestic ATF price hike at 25%, the Air India group is moving from a flat domestic surcharge to a more calibrated, distance-based grid, effective from April 8, 2026 (including Air India Express flights). This transition aligns with the industry's need for a structured approach to cost recovery.
At the same time, in the absence of any such mitigations on international ATF prices, the Air India group will be implementing more significant changes to fuel surcharges.
The decision is a direct response to the exponential rise in global jet fuel costs. Data from the International Air Transport Association (IATA) shows the global average jet fuel price nearly doubled, soaring from USD 99.40 per barrel at the end of February to USD 195.19 per barrel for the week ending March 27, 2026. This surge is compounded by the "crack spread", the refinery margin, which has nearly tripled in three weeks.
The fuel surcharges on international routes do not compensate for the exponential increase in jet fuel prices for international flights. Air India continues to absorb a significant portion of this increased cost. The revised international surcharges are per passenger, per sector, with effective dates varying by region.
Revisions to fuel surcharge on flights to and from Bangladesh and Far East destinations, namely Japan, Hong Kong, and South Korea, will be advised in due course subject to the requisite regulatory approvals.
For the avoidance of doubt, tickets that have already been issued prior to the above times will not attract the new surcharge unless customers seek date or itinerary changes that require a recalculation of the fare.
Air India will review its surcharges periodically and make appropriate adjustments as the situation requires.
