Air India Introduces Phased Fuel Surcharges on Flights

Air India announced on Tuesday a phased introduction of fuel surcharges on its domestic and international flights, including those operated by Air India Express, in response to a sharp increase in aviation turbine fuel prices triggered by supply disruptions in the Gulf region. The changes, effective starting March 12, will raise costs for passengers amid ongoing geopolitical tensions affecting global energy markets.

The airline attributed the decision to a significant escalation in aviation turbine fuel, or ATF, prices since early March 2026. ATF constitutes nearly 40 percent of an airline's operating costs, and the carrier noted that the surge stems from interruptions in the Gulf, compounded in India by high excise duties and value-added taxes on fuel in major cities like Delhi and Mumbai. These factors have intensified financial pressures on carriers, prompting the surcharge to help offset rising expenses.

Implementation will occur in three phases for all new bookings. In the first phase, beginning March 12, domestic flights within India and routes to South Asian Association for Regional Cooperation countries, including Afghanistan, Bangladesh, Bhutan, Maldives, Nepal,...