The Air India group has announced a revision in its fuel surcharge structure across domestic and international routes, citing continued volatility in aviation turbine fuel (ATF) prices.
Domestic Fuel Surcharge
Following the Ministry of Petroleum & Natural Gas’ and Ministry of Civil Aviation’s decision to cap domestic Aviation Turbine Fuel (ATF) price hike at 25 per cent, Air India group has transitioned from a flat domestic surcharge to a distance‑based grid. The revised structure will be effective from 0901 hrs IST on April 08, 2026, and will also apply to Air India Express flights.
Under the new structure, fuel surcharge per passenger per sector will range from INR 299 for distances up to 500 km to INR 899 for sectors exceeding 2,000 km. Intermediate bands have been set at INR 399 (501–1000 km), INR 549 (1001–1500 km) and INR 749 (1501–2000 km).
International Surcharges
For international routes, the airline group will implement more substantial increases due to the absence of regulatory mitigation on global ATF prices. According to the International Air Transport Association, global jet fuel prices surged to USD 195.19 per barrel for the week ending March 27, 2026, nearly doubling from USD 99.40 at the end of February.
The rise has been driven by increases in both crude oil prices and refinery margins, with the ‘crack spread’ nearly tripling from USD 27.83 to USD 81.44 per barrel over a three-week period. The airline noted that current surcharges still do not fully offset the sharp rise in fuel costs, with a significant portion being absorbed by the group.
Revised International Fuel Surcharge
Effective 0901 hrs IST on 8 April 2026, fuel surcharges per passenger per sector will be:
SAARC (excluding Bangladesh): USD 24
West Asia/Middle East: USD 50
China & Southeast Asia (excluding Singapore): USD 100
Singapore: USD 60
Africa: USD 130
Further revisions, effective 0001 hrs IST on April 10, 2026, include:
Europe (including the UK): USD 205
North America: USD 280
Australia: USD 280
Surcharge revisions for Bangladesh and Far East destinations, including Japan, Hong Kong and South Korea, will be announced separately, subject to regulatory approvals.
Tickets issued prior to the effective dates will not attract the revised surcharge unless changes are made to travel dates or itineraries requiring fare recalculation.
