Air India passengers traveling short distances (0-500 km) will now pay extra $299, while those traveling on longer routes of more than 2,000 km will be charged a fee $899.
Airfares on Air India flights are set to become more expensive, as the airline announced revised fuel surcharges across domestic and international routes amid a sharp rise in global jet fuel prices due to the ongoing war between the US and Iran.
The new surcharge structure will come into effect from April 8 for domestic routes and April 10 for major international sectors, the Tata group-owned transport company said. The move comes in the wake of a sharp rise in aviation turbine fuel (ATF) prices, which has led to a significant increase in operating costs for airlines around the world.
Additional fees based on distance for domestic travellers
For domestic travel, Air India has shifted from charging a fixed fuel surcharge to a distance-based model. Passengers traveling short distances (0-500 km) will now pay extra $$299 per sector, while those traveling on longer routes exceeding 2,000 km will be charged a fee. $899.
The revision is in line with the government’s decision to cap the increase in domestic ATF fares at 25%, providing partial relief to airlines and passengers. However, this moderate increase is expected to raise ticket prices in most sectors.
| Distance range (km) | Reviewer Additional fuel cost | Effective from |
|---|---|---|
| 0-500 | 299 Indian rupees | 0901 IST on 08 April 2026 |
| 501-1000 | 399 INR | |
| 1001-1500 | 549 Indian rupees | |
| 1501-2000 | INR 749 | |
| 2000+ | 899 Indian rupees |
International prices are rising sharply
The impact is expected to be more pronounced on international routes, where there is no such moderation in prices. Air India has introduced much higher surcharges depending on the region – ranging from $24 for destinations near SAARC to $280 for longer routes such as North America and Australia.
| region | Reviewer Additional fuel cost | Effective from |
|---|---|---|
| South Asian Association for Regional Cooperation (Except Bangladesh) | 24 USD | 0901 hours EST |
| West Asia/Middle East | 50 USD | |
| China and Southeast Asia (Except Singapore) | 100 US dollars | |
| singapore | 60 USD | |
| Africa | 130 USD | |
| Europe (including the UK) | 205 US dollars | 0001 hours EST April 10, 2026 |
| north america | 280 USD | |
| Australia | 280 USD |
The airline said it continues to absorb a portion of the increased fuel costs, suggesting prices would have been higher without this reserve.
Fuel prices have almost doubled globally
According to data from the International Air Transport Association (IATA), global jet fuel prices rose to $195.19 per barrel by late March, nearly doubling from around $99 just weeks ago. Refining margins, or “spreads,” have also tripled in a short period, exacerbating the cost burden on carriers.
Industry-wide multiplier effect
Air India’s move comes days after IndiGo reviewed its fuel surcharge structure, resulting in increased charges on both domestic and international routes. Airlines have had to pass on at least part of the increased costs to passengers, as fuel typically accounts for about 40% of operating expenses.
The rise in fuel prices has been linked to geopolitical tensions, including unrest around the Strait of Hormuz, a crucial transit point for global oil. The resulting uncertainty has led to higher crude oil prices and thus higher ATF costs.
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