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, it said.
In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the impact and placing substantial strain on airline operating economics, Air India said in a statement.
The new fuel surcharges are being implemented in three phases, covering travel on all flights, including those operated by Air India Express.
In the first phase, for all new bookings from 12 March fuel surcharge would be applicable. For domestic flights in India the fuel surcharge would be Rs 399 and USD 10 for West Asia/Middle East.
Air India 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.
