Air India Group has revealed plans to roll out a phased increase in fuel surcharges for both domestic and international flights, effective March 12, 2026. The move comes as the airline grapples with soaring jet fuel prices due to geopolitical tensions in the Gulf region.
According to a press release from the airline, aviation turbine fuel (ATF) now accounts for approximately 40% of its operating expenses. Since early March, ATF prices have surged sharply following significant supply disruptions. This spike is exacerbated by high excise duties and VAT on ATF, particularly in major cities like Delhi and Mumbai.
The new surcharges will be implemented over three phases. Phase 1 begins at 12:01 AM IST on March 12, affecting all newly booked flights. Notably, while no surcharge will apply to domestic flights initially, it will now be applicable for Southeast Asia routes starting with Singapore.
Phase 2 kicks in on March 18, introducing increased surcharges for North American routes. Meanwhile, Phase 3 will target destinations including Hong Kong, Japan, and South Korea; details for this phase are expected soon.
Importantly, passengers who booked flights before these changes won’t incur the new charges unless they alter their itinerary or travel dates necessitating fare recalculations. Air India has stated that the adjustments were necessary given circumstances beyond their control; without them, some services could face operational challenges or potential cancellations.
The airline committed to periodically review these surcharge levels based on fluctuating fuel prices and overall operational conditions.
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