Air India ticket prices are set to go up as the airline has revised its fuel surcharge structure across domestic routes by up to Rs 899 and on international routes by up to $280 or around Rs 26,000 ($1 = Rs 93). The move by the airline comes after the oil marketing companies (OMCs) revised aviation turbine fuel (ATF) prices last week.
Air India had last month introduced a fuel surcharge of Rs 400 for domestic flights and $10-$50 on international flights as the ongoing conflict in West Asia triggered a sharp rise in energy prices. The fresh revision, which is now based on distance travelled, takes the fuel surcharge up to Rs 899 (above 2000 km) for domestic flights and up to $280 for flights to North America and Australia. For European flights (excluding the UK), fuel surcharge now stands at $205.
“Following the Ministry of Petroleum & Natural Gas' and Ministry of Civil Aviation's decision to cap domestic ATF price hike at 25%, Air India group is reflecting this calibrated approach, transitioning from a flat domestic surcharge to a distance-based grid as follows, effective 08 April 2026 (including on Air India Express flights),” said the airline in a statement.
It added that in the absence of any such mitigations on international ATF prices, they will be implementing more significant changes to fuel surcharges. Jet fuel is the biggest expense for airlines, accounting for 35% to 40% of total operating costs.
According to the latest data published by the International Air Transport Association (IATA), the global average jet fuel price rose to $195.19 per barrel for the week ending 27 March 2026, up from $99.40 at the end of February, recording a surge of close to 100%.
ATF, produced by refining crude oil, has seen simultaneous increases in both its crude oil component as well as the refinery margin, known as ‘crack spread', with the latter having nearly tripled within three weeks. It increased from $27.83 per barrel for the week ending 27 February to $81.44 for the week ending 27 March.
“This steep rise compounds the impact of rising crude oil prices, creating one of the most challenging fuel cost environments that airlines globally have faced in recent years. The fuel surcharges on international routes do not compensate for the exponential increase in jet fuel prices for international flights. Air India continues to absorb a significant portion of this increased cost,” said the Tata Group airline.
It added that revisions to fuel surcharge on flights to and from Bangladesh and Far East destinations, namely Japan, Hong Kong, and South Korea, will be advised in due course subject to the requisite regulatory approvals.