The fuel surcharge will be Rs 399 flat for domestic South Asian Association for Regional Cooperation (SAARC) flights and up to $200 for international flights.
The fuel surcharge will be applied in three phases. The first phase will start from 1 am, India Standard Time, March 12, 2026, as an Air India statement.
Why has Air India introduced a fuel surcharge on its domestic and international flights?
Air India has introduced a phased fuel surcharge due to a sharp rise in aviation turbine fuel (ATF) prices. The increase is linked to supply disruptions caused by geopolitical tensions in the Gulf region, which have pushed up jet fuel costs globally. ATF accounts for nearly 40% of an airline’s operating costs, making the price spike significant for airline operations.
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How Air India’s fuel surcharge can impact domestic, international ticket prices?
Ajay Awtaney, founder, LiveFromALounge.com, an Indian Aviation coverage website, told ET Wealth Online,
“Due to the current volatility in fuel prices, it has become necessary for airlines to create a buffer in their pricing for customers who are going to travel with them, so the fuel surcharge is one such measure to allow them to create the buffer. For domestic tickets, this is new and will increase ticket prices by about Rs 400. International tickets already have a fuel surcharge, and there will be a slight increase in costs. It is a necessary evil in these times, and I hope the airline reconsiders once things calm down and removes it, or at least reduces it.”
Justifying its decision of increasing fuel surcharge, Air India said, “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.”.
New fuel surcharges are being implemented in three phases, covering travel on all flights, including those operated by Air India Express1. The are as follows:
Phase 1: For new bookings made from March 12, 2026
| Region | Current | Increase in | Revised Fuel Surcharge |
| Fuel Surcharge | Fuel Surcharge | ||
| Domestic India | Not applied | INR 399 | INR 399 |
| SAARC | Not applied | INR 399 | INR 399 |
| West Asia / Middle East | Not applied | USD 10 | USD 10 |
| Southeast Asia2 | USD 40 | USD20 | USD 60 |
| Africa | USD 60 | USD 30 | USD 90 |
| 2Fuel surcharge is currently not applied on flights to/from Singapore but shall apply from Phase 1 | |||
Phase 2: New bookings made from March 18, 2026
| Region | Current | Increase in | Revised Fuel Surcharge |
| Fuel Surcharge | Fuel Surcharge | ||
| Europe | USD 100 | USD 25 | USD 125 |
| North America | USD 150 | USD 50 | USD 200 |
| Australia | USD 150 | USD 50 | USD 200 |
Phase 3 : Will be announced shortly
Phase 3 will apply to and from far east markets, namely Hong Kong, Japan and South Korea.
Will the new fuel surcharge apply to tickets that have already been booked?
No, bookings that have already been made prior to 1 am, March 12, 2026, (as per Phase 1 instructions) will not attract the new surcharge unless customers seek date or itinerary changes that require a recalculation of the fare.
Note that Air India Express currently does not levy fuel surcharges on any of its flights.
When will Air India’s new fuel surcharge come into effect?
The surcharge will be implemented in three phases for new ticket bookings:
Phase 1: Bookings made from March 12, 2026 (for domestic India, SAARC, West Asia/Middle East, Southeast Asia and Africa
Phase 2: Bookings made from March 18, 2026 (for Europe, North America and Australia)
Phase 3: To be announced soon and will apply to certain far east routes.
Will Air India’s fuel surcharge apply to existing flight bookings?
No. Tickets that were booked before the surcharge announcement on March 10, 2026, will not attract the new fuel surcharge. However, if passengers later change the travel date or itinerary, the fare may be recalculated and the surcharge could apply, says Air India.
What will be the surcharge for domestic and international Air India flights?
Under Phase 1, a fuel surcharge of Rs 399 per ticket will be applied on domestic India and SAARC routes, while flights to West Asia/Middle East will attract a surcharge of $10 per ticket from March 12, 2026.
