Air India has revised its fuel surcharge for both domestic and international flights, citing a sharp rise in aviation turbine fuel (ATF) prices. The new charges will come into effect from 9 AM on April 8.
The move comes at a time when global crude oil prices have firmed up again, pushing ATF rates higher. In India, ATF prices have seen a cumulative increase of around 8–10% in recent months, according to industry estimates, putting pressure on airline operating costs.
Shift to distance-based pricing for domestic routes
Air India has replaced its earlier flat fuel surcharge system with a distance-based model for domestic flights.
Passengers will now pay:
- ₹299 for flights up to 500 km
- ₹399 for 501–1,000 km
- ₹549 for 1,001–1,500 km
- ₹749 for 1,501–2,000 km
- ₹899 for flights beyond 2,000 km
This change follows the government’s decision to cap ATF price increases at 25%, aimed at preventing sudden fare spikes while allowing airlines some flexibility.
International routes see region-wise surcharge
For international travel, Air India has introduced a slab-based surcharge depending on destination:
- SAARC routes (excluding Bangladesh): $24
- West Asia: $50
- Southeast Asia (excluding Singapore) and China: $100
- Singapore: $60
- Africa: $130
- Europe, including the UK: $205
- North America and Australia: $280
Revised charges for Bangladesh and Far East destinations such as Japan, Hong Kong, and South Korea will be announced later, subject to regulatory approvals.
Tickets already booked remain unaffected
The airline clarified that tickets booked before April 8 will not be impacted by the new surcharge unless passengers opt for changes in travel date or itinerary.
Why airlines are increasing fuel surcharge
Fuel accounts for nearly 35–40% of an airline’s operating cost in India, one of the highest globally due to taxes and price volatility. Even small increases in ATF prices can significantly impact airline margins.
Over the past two years, airlines have repeatedly adjusted fuel surcharges to cope with fluctuations in crude oil prices. In 2022, when global oil prices crossed $100 per barrel following geopolitical tensions, most Indian carriers sharply increased surcharges or fares.
Not the first revision
This is not the first time Air India has revised its surcharge structure after its acquisition by Tata Sons in 2022. The airline has been recalibrating pricing strategies as part of its broader transformation plan, which includes fleet expansion, service upgrades, and network optimisation.
In 2023 and 2024, airlines across India—including IndiGo and SpiceJet—also adjusted fares and surcharges multiple times in response to fuel price movements and rising demand.
Aviation sector under cost pressure
India’s domestic aviation market continues to grow, with passenger traffic crossing 150 million in 2025, but profitability remains under strain. Rising fuel costs, currency fluctuations, and competitive pricing keep margins tight.
With summer travel demand picking up, airlines are expected to closely monitor fuel prices and may revise fares further if costs continue to rise.
For passengers, this means slightly higher ticket prices in the coming weeks, especially on long-haul international routes.