Airfares are set to climb as Air India has revised its fuel surcharge across domestic and international routes following a sharp spike in global jet fuel prices amid the ongoing Iran war. The revised charges will come into effect from April 8 for most routes, while flights to Europe, North America and Australia will see changes from April 10, 2026, NDTV reported.
Shift to distance-based surcharge for domestic routes
For domestic travel, the airline has moved from a flat fee to a distance-based surcharge model. This means passengers will now pay more depending on how far they travel.
The revised structure starts at $299 for routes up to 500 km and goes up to $899 for flights exceeding 2000 km. The airline said this approach aligns with the government's decision to cap the Aviation Turbine Fuel (ATF) price hike at 25 per cent, reported NDTV.
The new grid will also apply to Air India Express services, ensuring a uniform pricing structure across the group.
International routes see sharper increase
Fuel surcharges for international flights have been raised more steeply, as there is no cap on global ATF prices. Region-wise charges now range from $24 for SAARC destinations to $280 for routes to North America and Australia.
Flights to Europe will attract a surcharge of $205, effective April 10. Despite the hike, Air India said the revised surcharge does not fully offset the increase in fuel costs, with the airline continuing to absorb part of the burden.
Surge in global fuel prices
According to the International Air Transport Association, global jet fuel prices have nearly doubled within a month. The average price rose from $99.40 per barrel at the end of February to $195.19 per barrel for the week ending March 27.
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Refinery margins, or crack spreads, have also surged significantly, adding to cost pressures for airlines worldwide.
Tickets issued before the effective dates will not include the revised surcharge. However, any changes to travel dates or routes may lead to a fare recalculation under the new structure.
