Air India on Tuesday announced further revisions to its fuel surcharge structure across domestic and international routes, amid a global energy crisis triggered by the US-Israeli war on Iran.
“Following the Ministry of Petroleum & Natural Gas' and Ministry of Civil Aviation's decision to cap domestic Aviation Turbine Fuel (ATF) price hike at 25%, Air India group is reflecting this calibrated approach, transitioning from a flat domestic surcharge to a distance‑based grid,” the carrier said in a statement.
Revised rates for domestic routes
The new rates are effective from 9.01 am of 8 April, 2026.
Revised rates for international routes
The revised rates for Europe, North America, and Australia will come into effect from 9.01 am of 10 April, 2026, while rates for the other regions will come into effect at the same time on 8 April, 2026.
Air India also said that revisions to fuel surcharge on flights to and from Bangladesh and Far East destinations—namely Japan, Hong Kong, and South Korea—would be notified in due time.
Will the revised rates affect existing bookings?
Air India clarified that the revised fuel surcharge rates would not affect existing bookings, unless customers seek itinerary changes that require a recalculation of fare.
“Air India will review its surcharges periodically and make appropriate adjustments as the situation requires,” the airline added.
Air India absorbing impact of oil price rise
Air India also said that it was absorbing a significant portion of the impact of rising oil prices.
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 nearly 100% from $99.40 at the end of February, the carrier explained, commenting on the revision.
“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," Air India added, calling the present situation “one of the most challenging fuel cost environments that airlines globally have faced in recent years.”
Noting that the increased fuel surcharges did not cover the rising costs of facilitating air travel, the airline said, “Air India continues to absorb a significant portion of this increased cost.”
