Why your next Air India flight ticket will cost more
What's the story
Air India has announced a phased increase in fuel surcharges across its domestic and international network. The decision comes in light of a sharp rise in jet fuel prices, which the airline attributes to the ongoing Iran-US war in the Middle East. The carrier has provided a slab of rates that will be implemented in three phases.
Surcharge rationale
Flights may get canceled if surcharges not raised: Air India
Air India has expressed regret over the decision but said it is unavoidable due to factors beyond its control. The airline warned that without these surcharge revisions, some flights could become commercially unviable and may even have to be canceled. "Absent such fuel surcharges, it is likely that some flights would be unable to cover operating costs and would have to be canceled," it said.
Surcharge details
New rates for international flights
The new fuel surcharge rates will be $10 for flights to the Middle East. For flights to Africa, it would be raised by $30 to $90, and it would be raised by $20 to $60 for Southeast Asia. Air India said it will periodically review these surcharges and adjust them as per the evolving situation. Meanwhile, its low-cost arm Air India Express won't impose any fuel surcharge on its flights for now.
Market impact
Iran-US war impacts global natural gas supply
Since early March 2026, aviation turbine fuel (ATF) has witnessed a steep price rise due to supply disruptions. Notably, ATF prices account for nearly 40% of an airline's operating costs. Air India said this pressure is compounded by high excise duty and VAT on ATF in major metro cities like Delhi and Mumbai. The Iran-US war has also impacted global natural gas supply, with over 750 cargo ships stranded at major ports in the region for over two weeks.