The surcharge will apply to new bookings across the Tata owned-airline’s network, including flights operated by Air India Express, with the airline saying the move has been necessitated by escalating jet fuel costs linked to supply disruptions in the Gulf region.
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However, AI informed that tickets issued prior to the specified dates will not attract the new surcharge unless passengers opt for changes to their travel dates or itineraries that require a recalculation of fares.
According to the airline, the pressure on operating costs in India is further intensified by high excise duties and value-added tax (VAT) on aviation turbine fuel, particularly in major aviation hubs such as Delhi and Mumbai.
“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 cost the impact and placing substantial strain on airline operating economics,” read a statement from the carrier.
Three-phase surcharge rollout Under the first phase, applicable to bookings made from 0001 hours IST on March 12, the airline will introduce a fuel surcharge of Rs 399 on domestic and SAARC routes where no such charge currently exists.
For international services in this phase, the airline will levy an additional surcharge of $10 on West Asia and Middle East routes, while the surcharge on Southeast Asia flights will rise from $40 to $60 and that on Africa routes from $60 to $90.
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Flights to and from Singapore, which currently do not attract a fuel surcharge, will also begin carrying the additional charge during this phase.
Meanwhile, the second phase will apply to bookings made from March 18, when surcharges on long-haul routes will increase further.
For flights to Europe, the surcharge will rise by $25 to $125, while services to North America and Australia will see an increase of $50, taking the surcharge on each route to $200.
Moreover, AI clarified that third phase covering Far East destinations, including Hong Kong, Japan and South Korea, will be announced at a later stage.
