Gurugram, 10 March 2026: Air India group today announced a phased expansion of a fuel surcharge on its domestic and international routes, necessitated by the steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region.

Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40% of an airline’s operating costs, has seen significant price escalation due to supply interruptions.

In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the impact and placing substantial strain on airline operating economics.

The new fuel surcharges are being implemented in three phases, covering travel on all flights, including those operated by Air India Express1, as follows:

Phase 1 (for all new bookings made from 0001 hours India Standard Time on 12 March 2026):

2Fuel surcharge is currently not applied on flights to/from Singapore but shall apply from Phase 1

Phase 2 (for all new bookings made from 0001 hours India Standard Time on 18 March 2026):

Phase 3 will apply to and from Far East markets, namely Hong Kong, Japan, and South Korea, which will be announced in due course.

For the avoidance of doubt, bookings that have already been made prior to the above times will not attract the new surcharge unless customers seek date or itinerary changes that require a recalculation of the fare.

Air India regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control. Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled.

Air India will review its surcharges periodically and make appropriate adjustments as the situation requires.

Air India Express currently does not levy fuel surcharges on any of its flights.

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About Air India group

The Air India group – comprising of full-service global airline, Air India, and value carrier, Air India Express – is spearheading a new era of Indian aviation. The Air India story began in 1932 when JRD Tata piloted the airline’s inaugural flight and opened the skies for aviation in India. Today, Air India group employs more than 30,000 people, operates over 300 aircraft and carries customers to 58 domestic and 51 international destinations across five continents.

Returning to the Tata Sons in 2022 following 70 years under Government ownership, Air India group is in the midst of a five-year transformation program, Vihaan.AI. As part of the transformation, Air India has placed an order for 600 new aircraft. In 2024, sister airlines Air Asia India and Vistara were successfully merged into Air India Express and Air India, respectively, and the Airline opened South Asia’s largest aviation training academy. A new flying school is scheduled to open in 2026, and construction of a greenfield maintenance base, to be operational in 2026, is underway. In addition to receiving new aircraft, all existing aircraft are progressively undergoing a full interior refit.

With transformation underway across all facets of the business and India’s rich legacy of hospitality, Air India is committed to being a world class global airline with an Indian heart.