Flying to Get Costlier: Air India Ticket Prices Set to Rise as Fuel Surcharge Hiked

New Delhi: The Air India group has announced a revision in fuel surcharge across both domestic and international routes, citing a sharp rise in global aviation fuel prices. The revised charges will come into effect from April 8, 2026.

The move comes amid what the airline described as one of the most challenging fuel cost environments in recent years.

Domestic Routes Shift to Distance-Based Surcharge Model

For domestic travel, Air India has transitioned from a flat surcharge to a distance-based structure, aligning with the government’s decision to cap Aviation Turbine Fuel (ATF) price hikes at 25%.

Under the revised structure, passengers will pay a fuel surcharge per sector based on distance:

The new rates will be effective from 09:01 AM IST on April 8, including flights operated by Air India Express.

Steeper Revisions for International Routes

On international routes, where no such price caps apply, the airline has introduced significantly higher surcharges.

Revised charges per passenger, per sector include:

These revised international surcharges will come into effect on April 8 and 10, respectively (for select regions).

Global Fuel Prices Nearly Double in a Month

The revision follows a steep surge in global jet fuel prices. According to the International Air Transport Association (IATA), average jet fuel prices rose to $195.19 per barrel in late March, nearly doubling from $99.40 per barrel at the end of February.

Additionally, the refinery margin, or “crack spread,", has tripled in recent weeks, further increasing the cost of producing Aviation Turbine Fuel (ATF).

Despite the hike, Air India stated that the revised surcharges do not fully offset the increase in fuel costs, particularly on international routes.

The airline said it continues to absorb a significant portion of the cost burden to minimise its impact on passengers.

Existing Bookings Unaffected

Air India clarified that tickets issued before the revised surcharge timelines will not be impacted unless passengers make changes to their travel plans that require fare recalculation.

The airline also noted that surcharge levels will be reviewed periodically depending on market conditions.

The revision highlights the broader impact of rising crude oil prices and geopolitical tensions on the aviation sector.

With fuel being one of the largest operational costs for airlines, sustained price volatility is expected to influence fares and travel demand in the coming months.