NEW DELHI – The Air India Group, comprising Air India and Air India Express, has announced a phased increase in flight fares through the introduction of new fuel surcharges. This decision comes as a direct response to the sharp escalation in global aviation turbine fuel (ATF) prices, triggered by the ongoing conflict in West Asia and supply chain disruptions. According to an official statement, the new charges will apply to all new tickets issued starting from March 12, 2026.
Under the first phase of the rollout, domestic passengers within India and those traveling to SAARC nations will see an additional levy of ₹399 per ticket. For international sectors, a new surcharge of $10 (approximately ₹840) will be introduced for flights to West Asia and the Gulf region. Travelers to Southeast Asia and Africa will face steeper hikes, with surcharges rising to $60 and $90 respectively.
The airline group explained that the move is essential for maintaining operational viability, as fuel costs now account for nearly 40% of total operating expenses. High excise duties and Value Added Tax (VAT) in major Indian hubs like Delhi and Mumbai have further amplified the financial pressure on carriers. Officials noted that without these adjustments, the airline might be forced to cancel flights that are no longer able to cover their basic operating costs.
A second phase of the hike is scheduled to begin on March 18, 2026, which will see surcharges on long-haul routes to Europe, North America, and Australia increase by $25 to $50. While existing tickets booked before the implementation dates remain unaffected, any subsequent changes to travel dates or itineraries will be subject to the revised fare structure. Industry experts anticipate that other major Indian airlines may follow suit with similar price corrections in the coming days.
