Air India Revises Fuel Surcharge Structure Across Domestic and International Routes

Air India has announced revisions to its fuel surcharge structure across both domestic and international routes, reflecting evolving fuel cost dynamics and regulatory developments.

New Fuel Surcharge Grid Announced by Air India for Domestic and International Travel

Following a directive by the Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation to cap the increase in domestic Aviation Turbine Fuel (ATF) prices at 25%, the airline is transitioning from a flat surcharge model to a distance-based structure.

Effective from 09:01 hrs IST on April 8, 2026, the revised surcharge per passenger per sector will range from INR 299 for flights up to 500 km, increasing progressively to INR 899 for distances exceeding 2,000 km. The revised structure will also apply to flights operated by Air India Express.

International Fuel Surcharge Adjustments

For international routes, the airline will implement more significant revisions due to continued volatility in global fuel prices. According to data from the International Air Transport Association, average jet fuel prices nearly doubled within a month, rising to USD 195.19 per barrel by late March 2026.

In addition to rising crude oil costs, refinery margins—commonly referred to as the “crack spread”—have also surged sharply, further increasing the cost burden on airlines worldwide. Despite these pressures, Air India noted that the revised surcharges do not fully offset the increase in fuel costs, with the airline continuing to absorb a portion of the impact.

Under the updated structure, fuel surcharges for international travel will vary by region. For routes within SAARC (excluding Bangladesh), the surcharge will be USD 24, while West Asia and the Middle East will see a surcharge of USD 50. Routes to Southeast Asia (excluding Singapore) will carry a surcharge of USD 100, while Singapore routes will be charged USD 60.

Higher surcharges will apply to long-haul destinations, including USD 130 for Africa, USD 205 for Europe (including the United Kingdom), and USD 280 for both North America and Australia. These changes will come into effect from April 8, 2026, with revisions for select long-haul regions such as Europe, North America, and Australia applicable from April 10, 2026.

The airline also indicated that revisions for routes to Bangladesh and Far East destinations—including Japan, Hong Kong, and South Korea—will be announced later, subject to regulatory approvals.

Implementation and Applicability

Tickets issued prior to the effective dates will not be subject to the revised surcharges unless customers make changes to their itinerary that require fare recalculation. Air India stated that it will continue to review fuel surcharges periodically and adjust them in response to market conditions.

The move comes amid one of the most challenging fuel cost environments in recent years, prompting airlines globally to reassess pricing structures while balancing affordability and operational sustainability.