New Delhi: Air India group on Tuesday announced a phased expansion of fuel surcharge on its domestic and international routes, saying the move is “necessitated by the steep rise in jet fuel prices” arising from the geopolitical situation in the Gulf region. 

The new fuel surcharges are being implemented in three phases, covering travel on all flights, including those operated by Air India Express.

In Phase 1 (for all new bookings made from 0001 hours India Standard Time on March 12, 2026), the revised fuel surcharge will be Rs 399 for domestic flights; Rs 399 for SAARC region; $10 for the West Asia/Middle East region; $60 for Southeast Asia region; and $90 for the Africa region.

In phase 2, the revised fuel surcharge will be $125 for Europe; $200 for North America and $200 for Australia, said Air India.

“Phase 3 will apply to and from Far East markets, namely Hong Kong, Japan, and South Korea, which will be announced in due course,” the airline added.

Tickets that have already been issued prior to the above times will not attract the new surcharge unless customers seek date or itinerary changes that require a recalculation of the fare, it noted.

Air India said it “regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control”. 

“Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled. Air India will review its surcharges periodically and make appropriate adjustments as the situation requires,” the airline said.

Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40 per cent of an airline’s operating costs, has seen significant price escalation due to supply interruptions.

In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying cost the impact and placing substantial strain on airline operating economics, said Air India.