Air travel is set to become more expensive as Air India and Air India Express are revising their fuel surcharge across domestic and select international routes. The revised fuel surcharge, ranging between Rs 400 and $215 (Rs 20,855 in current rupee value) will be reflected in the fare applicable to new bookings made from 0000 Hrs IST on 9 October for Air India Express, and from 1100 hrs IST on 9 October for Air India.
Air India attributed the move to a sharp surge in aviation turbine fuel (ATF) prices, triggered by geopolitical developments in the Middle East/West Asia.
The fresh move also comes days after the country’s largest airline - IndiGo - reintroduced a fuel surcharge on domestic and international flights from October 6, 2026. IndiGo’s surcharge ranges from Rs 375 to Rs 10,000, depending on the route and sector.
Joining the two major airlines, Akasa Air also introduces a fuel surcharge on domestic routes and revised the existing fuel surcharge on international routes, effective from 00:01 hrs on October 9, 2026 onwards. Akasa’s fuel surcharge ranges from Rs 375 to Rs 2,500.
For domestic one-way flights, Air India and Air India Express will charge a fuel surcharge of Rs 400 for routes less than 500 km, Rs 600 for routes between 501- 1,000 km, Rs 850 for routes between 1,001-1,500 km, Rs 1,200 for routes between 1,501-2,000 km and Rs 1,200 for routes above 2,000 km. For international flights, Air India and Air India Express will charge a fuel surcharge of $55 for West Asia/Middle East, $135 for Europe including the UK, $210 for Australia and $215 for North America.
The revision of fuel surcharges also comes at a time when air traffic in India has seen a sharp decline, primarily due to rising ticket prices.
India recorded the sharpest decline in domestic air passenger traffic among the major domestic aviation markets in August, with revenue passenger kilometres (RPK) falling 7.5% year-on-year, according to data released by the International Air Transport Association (IATA).
As per DGCA data, passenger traffic fell 6.34% month-on-month in August 2026 to 121.26 lakh passengers in August, compared with 129.47 lakh in July 2026. A sharp rise in ticket prices will further weigh on passengers' ability to book flight tickets.
“ATF prices have witnessed significant volatility in recent months, driven largely by geopolitical developments and sustained pressure on global energy markets. The latest increase in fuel prices has further elevated operating costs for airlines, with fuel continuing to account for a substantial proportion of overall airline expenditure,” said Air India in a statement.
Akasa has kept a standard Rs 2,500 fuel surcharge across its international flights.
ATF, which accounts for up to 40% of an airline's operating costs, has become expensive again amid the ongoing conflict in West Asia. After falling from Rs 115 per litre in June to Rs 110 in July, domestic ATF prices rose back to Rs 115 per litre in August and then to Rs 121 per litre on September 1. The prices were further increased to Rs 137 per litre for domestic airlines from October 1.
The global average jet fuel price last week rose 1.0% compared to the week before to $187.34/bbl, according to AITA’s jet fuel price monitor. It used to hover around $85 to $90 per barrel before the war began on February 28.
Airlines, including Air India, IndiGo and Akasa, had introduced fuel surcharges in March 2026 when global ATF prices shot up after US-Israel forces launched an attack on Iran on 28 February, leading to a conflict which is still far from over. The airlines lowered the surcharges around July as prices stabilised. With tension again peaking in the region, energy prices, including Brent crude, LNG and ATF, have soared in recent weeks.
The airlines continue to say that they will review surcharges periodically and make appropriate adjustments as the situation requires.
