Air India hikes fuel surcharge again amid raging West Asia conflict; check how much you have to pay

Air India travellers will have to shell out more for tickets amid the raging West Asian crisis as the airline today increased fuel surcharges by more than double on domestic flights, from a flat ₹399 to up to ₹899 for flights covering distances of over 2,000 km. 

The revised charges will range from ₹299 for flights up to 500 km to ₹899 for sectors above 2,000 km (See the table). 

The revised charges will apply to tickets issued from April 8 onwards while existing bookings will not be impacted unless there are changes in travel plans, Air India said. 

Effective April 1, 2026, the government mandated PSU OMCs to pass on up to 25% hike on the Aviation Turbine Fuel (ATF) price for domestic airlines against an expected 100% hike. Of this, the OMCs have passed an 8.5% hike to airlines.

When the airline first introduced the surcharge on March 12, it had set a flat rate of ₹399 across all distances. However, the airline had imposed surcharges on international flights ranging from $10 to $90 across different regions.

Why is Air India increasing the surcharge 

The airline said it is “reflecting this calibrated approach, transitioning from a flat domestic surcharge to a distance-based grid.” 

Explaining the rationale, the airline pointed to a sharp spike in global fuel costs. “According to the latest data published by the International Air Transport Association (IATA), the global average jet fuel price rose to $195.19 per barrel for the week ending 27 March 2026, up from $99.40 at the end of February, recording a surge of close to 100%.” 

On international routes, however, the increase is steeper due to the absence of similar price controls. Fuel surcharges will now vary by region, going up to $280 per passenger for long-haul destinations such as North America and Australia. 

It added that the refining margin, or ‘crack spread’, has also surged. “It increased from ₹27.83 per barrel for the week ending 27 February to ₹81.44 for the week ending 27 March.” 

Airline is also absorbing a part of the cost pressure 

Despite the hike, the airline claims that it is still absorbing a part of the cost pressure.  

“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 announcement said. 

The airline said it will continue to review fuel surcharges periodically depending on global price movements.