Air passengers in India are likely to face higher ticket prices as Air India introduces a revised fuel surcharge structure across both domestic and international routes. The changes, scheduled to take effect from April 8 and April 10, come amid a sharp rise in global jet fuel prices driven by ongoing geopolitical tensions, particularly the US-Iran conflict.
Air India Fuel Surcharge Hike: Flight Ticket Prices to Rise From April 8
According to data from the International Air Transport Association, jet fuel prices surged to around 195.19 dollar per barrel by late March, nearly doubling from about 99 dollar just weeks earlier. At the same time, refining margins-commonly referred to as crack spreads-have also tripled, significantly increasing operational costs for airlines.

Air India Domestic Fuel Surcharge: New Distance-Based Charges
For domestic travel, Air India has replaced its flat fuel surcharge with a distance-based pricing model. This means passengers will now pay different charges depending on the length of their journey.
0-500 km: Rs 299
501-1000 km: Rs 399
1001-1500 km: Rs 549
1501-2000 km: Rs 749
Above 2000 km: Rs 899
These revised charges will come into effect from 0901 hrs IST on April 8, 2026. The move follows the government's decision to cap increases in aviation turbine fuel (ATF) prices at 25%, which has provided only partial relief to airlines.
International Flight Ticket Charges: Higher Surcharges Across Regions
The impact is more pronounced for international routes, where no such price cap exists. Air India has introduced region-specific surcharges, significantly increasing travel costs for long-haul destinations.
SAARC (excluding Bangladesh): USD 24
West Asia/Middle East: USD 50
China & Southeast Asia (excluding Singapore): USD 100
Singapore: USD 60
Africa: USD 130
Europe (including UK): USD 200
North America & Australia: USD 280
For most regions, these changes will apply from April 8, while routes to Europe, North America, and Australia will see revised charges from April 10, 2026.
Why Airfares Are Rising
The surge in fuel prices has been largely attributed to tensions around the Strait of Hormuz, a critical global oil supply route. Disruptions and uncertainty in this region have pushed crude oil prices higher, directly impacting aviation fuel costs.
Fuel typically accounts for nearly 40% of an airline's operating expenses. With such a steep increase, airlines have been forced to pass on part of the burden to passengers through revised surcharges.
Air India is not alone in adjusting fares. Other carriers, including IndiGo, have also increased fuel surcharges recently. This suggests a broader industry trend, meaning travellers across India could face higher ticket prices regardless of the airline they choose.
Despite the hike, Air India has indicated that it is still absorbing a portion of the increased fuel costs internally, hinting that fares could have risen even further without this buffer.
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