Gurugram : Air India Group today announced a phased expansion of a fuel surcharge on its domestic and international routes. This decision has been necessitated by a steep rise in Aviation Turbine Fuel (ATF) prices, triggered by the ongoing geopolitical situation in the Gulf region.
Since early March 2026, fuel prices—which account for nearly 40% of an airline’s operating costs—have escalated significantly due to supply interruptions. In India, this pressure is further amplified by high Excise Duty and VAT in major metros like Delhi and Mumbai, placing substantial strain on the airline’s operating economics.
The new fuel surcharges will be implemented in three phases across all flights, including those operated by Air India Express.
Phase 1 Details (Effective for new bookings from 00:01 IST, March 12, 2026):
| Region | Current Surcharge | Increase | Revised Surcharge |
| Domestic India | Not Applied | INR 399 | INR 399 |
| SAARC | INR 399 | Nil | INR 399 |
| West Asia / Middle East | Not Applied | USD 10 | USD 10 |
| Southeast Asia | USD 40 | USD 20 | USD 60 |
| Africa | USD 30 | USD 60 | USD 90 |
Note: Surcharge on Singapore flights will also become effective from March 12.
Air India is currently undergoing a major five-year transformation under the 'Vihaan.AI' program, which includes an order for 600 new aircraft and the successful merger of Vistara and Air Asia India into the group.