Air India Follows IndiGo with Steep Fuel Surcharge Hike Amid West Asia War
New Delhi, April 8, 2026 — Indian air travelers must brace for significantly costlier flights. Following in the footsteps of market leader IndiGo, the Air India group has announced a major hike in fuel surcharges across most of its domestic and international routes, citing the massive surge in global aviation turbine fuel (ATF) prices driven by the ongoing war in West Asia.
The new surcharge structure for domestic flights and most international routes comes into effect at 9:01 AM on Wednesday, April 8, 2026. However, flights connecting India to Europe, the UK, North America, and Australia will see the revised levy take effect starting April 10.
Distance-Based Surcharge for Domestic Routes
Initially, on March 12, Air India and its budget arm, Air India Express, introduced a flat fuel surcharge of ₹399 across all domestic routes to cushion the blow of rising international crude oil prices.
With the latest revision, this flat rate has been scrapped in favor of a distance-based, tiered structure. Passengers flying domestic routes will now have to pay between ₹299 and ₹899 as a fuel surcharge, depending on the flight distance:
Up to 500 km (e.g., Delhi-Jaipur): ₹299
501 to 1,000 km (e.g., Delhi-Ahmedabad): ₹399
1,001 to 1,500 km (e.g., Delhi-Mumbai): ₹549
1,501 to 2,000 km (e.g., Delhi-Bengaluru): ₹749
Over 2,000 km (e.g., Delhi-Thiruvananthapuram): ₹899
Steeper Hikes for International Travel
The financial hit is significantly heavier for international flyers. Because scheduled domestic airlines received a “partial and staggered” ATF price hike from public sector oil marketing companies (OMCs), their surcharge increase is relatively measured. For international flights, however, airlines must pay the full, market-linked price for jet fuel.
As a result, Air India’s surcharge for most international flights beyond South Asia has jumped drastically from an earlier range of $10–$200 to a new range of $50–$280.
West Asia: Surcharge hiked from $10 to $50.
Southeast Asia (excluding Singapore): Hiked from $60 to $100.
Africa: Jumped from $90 to $130.
UK and Europe: Increased heavily from $125 to $205.
North America and Australia: Hiked by 40%, jumping from $200 to $280.
Flights to neighboring SAARC countries (excluding Bangladesh) will now attract a $24 surcharge, replacing the earlier flat fee of ₹399. The airline stated that revisions for routes to Bangladesh and Far East destinations like Japan, Hong Kong, and South Korea will be announced pending regulatory approvals.
Global Crisis Impacting Local Fares
According to the International Air Transport Association (IATA), the global average jet fuel price nearly doubled in just a month, jumping from $99.40 per barrel in late February to $195.19 by late March due to geopolitical turmoil in the Middle East. Similarly, the crack spread—the difference between the price of crude oil and its derivatives like ATF—trebled in the same period.
Even before the war, jet fuel accounted for over 40% of the operating costs for Indian airlines. Air India stated that despite the steep hikes in passenger surcharges, the new levies “do not compensate for the exponential increase in jet fuel prices for international flights,” noting that the airline is still absorbing a significant portion of the increased costs itself to prevent total demand destruction.
The airline confirmed it will continually review its surcharges and make periodic adjustments as the volatile global situation demands.
