Air India group to charge Rs.399 as fuel surcharge on domestic flights from 12 March 2026
Air India group announced a phased expansion of a fuel surcharge on its domestic and international routes, necessitated by the steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region.
Why the surcharge?
- Jet fuel costs (ATF) have surged since early March 2026 due to geopolitical tensions in the Gulf disrupting supply.
- ATF makes up ~40% of airline operating costs.
- In India, Excise Duty + VAT in metros like Delhi and Mumbai amplify the impact.
Phase 1 (effective 12 March 2026, 0001 hrs IST)
Phase 2 (effective 18 March 2026, 0001 hrs IST)
Passenger Impact
- Existing bookings remain unaffected unless passengers change dates/itineraries.
- Air India Express, which previously did not levy surcharges, will now apply them in line with Air India.
- Air India emphasizes surcharges are necessary to avoid flight cancellations.
- Periodic reviews will adjust surcharges as fuel prices evolve.
This phased rollout shows how airlines balance financial sustainability with passenger transparency. It’s also a reminder of how sensitive aviation economics are to global energy markets.
Follow us on Insta
