NEW DELHI : The airline said it will impose a fuel surcharge ranging from Rs 299 to Rs 899 on domestic routes, while international passengers will see additional charges between USD 24 and USD 280, depending on distance and route. The revised surcharge will also apply to flights operated by its low-cost subsidiary, Air India Express.
Air India noted that surcharge revisions for routes to Bangladesh and Far East destinations such as Japan, Hong Kong, and South Korea will be announced later, subject to regulatory approvals.
The move comes after the government capped domestic Aviation Turbine Fuel (ATF) price hikes at 25 per cent. In response, the airline has shifted from a flat surcharge model to a distance-based grid for domestic flights, aiming for a more calibrated pricing approach.
However, with no similar relief on international ATF prices, the airline has introduced steeper surcharges for overseas routes. Other carriers, including IndiGo, have already implemented similar fare adjustments.
According to the International Air Transport Association (IATA), global jet fuel prices have nearly doubled within a month, rising from USD 99.40 per barrel at the end of February to USD 195.19 for the week ending March 27.
Fuel costs, which account for nearly 40–45 per cent of an airline’s total expenses, have been driven higher by both rising crude oil prices and a sharp increase in refinery margins, known as the “crack spread.” This margin surged from USD 27.83 per barrel in late February to USD 81.44 by March 27.
Air India stated that despite the surcharge revisions, the additional charges do not fully offset the steep rise in international fuel costs, and the airline continues to absorb a significant portion of the financial burden.
Air India will raise fares from April 8 by introducing a distance-based fuel surcharge of Rs 299–899 on domestic routes and USD 24–280 on international flights, as global jet fuel prices nearly double. The move, also covering Air India Express, follows a government cap on domestic ATF hikes, but offers no similar relief for overseas operations.