Air India Ticket Prices to Rise From 12 March: Airline Announces Fuel Surcharge on Domestic and Global Flights

India's flag carrier Air India will introduce a phased fuel surcharge on most domestic and international tickets starting March 12, 2026, citing a sharp rise in aviation turbine fuel (ATF) prices linked to geopolitical tensions in the Gulf region. The airline said the additional charge is necessary as fuel costs continue to rise, pushing up overall operating expenses.

Fuel Costs Prompt Air India to Add Surcharge

The airline said aviation turbine fuel (ATF) currently accounts for nearly 40% of an airline's operating costs, making it one of the largest expense components in the aviation industry. Recent supply disruptions in the Gulf region have triggered a spike in global fuel prices, leaving airlines with limited options to absorb the increase.

As a result, Air India has decided to introduce a dedicated fuel surcharge on tickets to offset rising costs. The surcharge will be implemented in three phases, covering different regions and routes across the airline's network.

Phase 1 Fuel Surcharge Begins March 12

Under Phase 1, which will apply to bookings made from March 12, 2026, passengers flying on domestic routes in India and to countries within the South Asian Association for Regional Cooperation (SAARC) region will see a fuel surcharge of Rs 399 per ticket.

Flights to West Asia and the Middle East will attract an additional $10 fuel surcharge per ticket. Meanwhile, routes to Southeast Asia will see the surcharge rise from $40 to $60, while flights to Africa will increase from $60 to $90.

The airline also confirmed that Singapore routes, which previously did not have any fuel surcharge, will now be included in the surcharge structure as part of Phase 1.

Phase 2 to Cover Long-Haul Routes

The second phase of the surcharge plan will come into effect from March 18, 2026, and will apply to long-haul destinations including Europe, North America, and Australia.

Under this phase, the fuel surcharge for Europe-bound flights will increase from $100 to $125, while routes to North America and Australia will see the surcharge rise from $150 to $200 per ticket.

Phase 3 to Include Far East Routes

In the third phase, which will be introduced at a later date, the surcharge will be extended to routes in the Far East, including destinations such as Hong Kong, Japan, and South Korea. However, the airline has not yet disclosed the exact surcharge amounts for these markets.

Surcharge to Apply Across Air India Group Flights

According to the airline, the fuel surcharge will initially be uniform across different cabin classes and will apply to most flights operated within the Air India Group, including services run by Air India Express.

Air India Express currently does not charge a separate fuel surcharge, but the airline indicated that this policy could change once the phased surcharge rollout is fully implemented.

Impact on Air India Ticket Prices

With the new fuel surcharge in place, passengers may see higher ticket prices across several domestic and international routes. The airline said the phased implementation is designed to help manage rising fuel costs while maintaining operational stability in a volatile global energy market.

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