07 April,2026 01:43 PM IST | Mumbai | mid-day online correspondent
For domestic travel, the airline has shifted from a flat fuel surcharge to a distance-based grid system
The Air India group on Tuesday announced a revision in its fuel surcharge structure across both domestic and international routes, citing a sharp surge in global jet fuel prices. The changes will come into effect from April 8, 2026, including flights operated by Air India Express.
For domestic travel, the airline has shifted from a flat fuel surcharge to a distance-based grid system, aligning with the government's decision to cap Aviation Turbine Fuel (ATF) price hikes at 25 per cent.
The move follows directives from the Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation, aiming to balance rising operational costs while limiting the impact on passengers.
On international routes, however, the absence of similar regulatory relief has led to more significant increases in fuel surcharges.
According to the International Air Transport Association (IATA), global jet fuel prices have nearly doubled, rising from USD 99.40 per barrel at the end of February to USD 195.19 per barrel for the week ending March 27, 2026.
Airlines are also grappling with a sharp rise in refining margins, or âcrack spread', which has surged from USD 27.83 to USD 81.44 per barrel within three weeks - further intensifying cost pressures.
Despite the revision, Air India stated that the updated surcharges do not fully offset the steep increase in fuel prices, and the airline will continue to absorb a significant portion of the additional costs.
The airline clarified that tickets issued before April 8 will not be affected, unless passengers make changes to their travel dates or itineraries that require fare recalculation.
Air India also said that surcharge revisions for routes to and from Bangladesh and Far East destinations, including Japan, Hong Kong, and South Korea, will be announced separately, subject to regulatory approvals.
The airline added that it will periodically review fuel surcharges and make adjustments depending on global fuel price trends.
This marks the second consecutive instance of the Air India group implementing a phased increase in fuel surcharges across its domestic and international network, attributing the move to a sharp rise in aviation turbine fuel (ATF) prices amid geopolitical tensions in the Gulf region.
Earlier, from March 12, Air India had introduced a fuel surcharge of Rs 399 on domestic flights, while also rolling out phased increases on international routes, citing escalating ATF costs. The airline had clarified that passengers holding existing tickets would not be impacted unless they opted to modify their travel plans.
On March 10, the airline had highlighted that ATF, which constitutes nearly 40 per cent of an airline's operating expenses, witnessed a significant surge due to supply disruptions. In India, the situation is further aggravated by steep excise duty and value-added tax (VAT) on ATF in key metro cities such as Delhi and Mumbai, adding pressure on airline operating margins.
