Following the Ministry of Petroleum & Natural Gas’ and Ministry of Civil Aviation’s decision to cap domestic Aviation Turbine Fuel (ATF) price hike at 25%, Air India group is reflecting this calibrated approach, transitioning from a flat domestic surcharge to a distance based grid as follows, effective 08 April 2026 (including on Air India Express flights), the airline said.
As per the details shared by the airline, for domestic routes for a distance band of up to 500 km, the surcharge will be Rs 299. For 501–1000 km, the surcharge will be Rs 399 and will increase to Rs 549 for a distance band of 1001–1500 km. For 1501–2000 km the surcharge will be Rs 749 and for over 2,000 km it will be Rs 899.
On international routes, Air India said in the absence of any such mitigations on international ATF prices, it will be implementing more significant changes to fuel surcharges.
According to the latest data published by the International Air Transport Association (IATA), the global average jet fuel price rose to USD 195.19 per barrel for the week ending 27 March 2026, up from USD 99.40 at the end of February, recording a surge of close to 100 per cent, the airline said.
ATF, produced by refining crude oil, has seen simultaneous increases in both its crude oil component as well as the refinery margin, known as ‘crack spread’, with the latter having nearly tripled within three weeks. It increased from USD 27.83 per barrel for the week ending 27 February to USD 81.44 for the week ending 27 March. This steep rise compounds the impact of rising crude oil prices, creating one of the most challenging fuel cost environments that airlines globally have faced in recent years, it added.
The fuel surcharges on international routes do not compensate for the exponential increase in jet fuel prices for international flights. Air India continues to absorb a significant portion of this increased cost, the company said.
Air India will levy a revised surcharge of USD 24 on SAARC routes, excluding Bangladesh. For West Asia/Middle East the surcharge will be USD 50 and for China and Southeast Asia
(excluding Singapore) it will be USD 100. For Singapore the levy will be USD 60. For Europe (including the United Kingdom) it will be USD 205 and for North America and Australia it will be USD 280.
Revisions to fuel surcharge on flights to and from Bangladesh and Far East destinations, namely Japan, Hong Kong, and South Korea, will be advised in due course subject to the requisite regulatory approvals. For the avoidance of doubt, 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, Air India said.
