Air India prices are set to rise as the airline on Tuesday announced a hike in fuel surcharges amid conflict in the West Asia region.
The airline announced a “gradual expansion” of fuel surcharges on its domestic and international routes, noting “the sharp rise in jet fuel prices resulting from the geopolitical situation in the Gulf region.”
The price of aviation turbine fuel (ATF), which accounts for nearly 40 per cent of the airline’s operating costs, has seen a significant escalation since early March 2026, Air India said in a statement announcing the increase. The airline said this is due to “supply disruption”.
Air India said the pressure in India is being amplified by “higher customs duties and VAT” on aviation turbine fuel in major metro cities including Delhi and Mumbai. This ultimately exacerbates the cost and puts significant pressure on the operating economics of airlines, she added.
The new fuel surcharge will be implemented in three stages
The airline said the new fuel surcharge will be implemented in three stages. Under the first phase, fuel surcharges $399 will apply to bookings for domestic travel as well as SAARC countries. West Asian and Middle Eastern countries will also apply to a US$10 increase. Previously, reservations for these areas did not carry any fuel surcharge.
The fuel surcharge for Southeast Asian countries will be increased from US$40 to US$60, and for the Africa region from US$60 to US$90.
