Air India has increased fuel surcharges on both domestic and international routes, as global jet fuel prices have surged sharply, adding to the cost pressure already faced by airlines.
The increase in fuel surcharges comes amid the West Asia war that has led to an energy crisis pushing oil prices higher. Increase in ticket fares comes as Air India Chief Executive Officer (CEO) and Managing Director (MD) Campbell Wilson has resigned from his position.
The move reflects how rising fuel costs are starting to directly impact ticket pricing, even as carriers try to absorb part of the increase.
Air India has revised its domestic fuel surcharge by introducing a distance-based structure, replacing the earlier flat charge. This means the extra amount a passenger pays will now depend on how far they are flying.
For short-haul flights of up to 500 km, passengers will pay an additional Rs 299.
For routes between 501 km and 1,000 km, the surcharge has been set at Rs 399.
Flights covering 1,001 km to 1,500 km will attract a surcharge of Rs 549.
For longer domestic routes between 1,501 km and 2,000 km, passengers will pay Rs 749.
For flights above 2,000 km, the surcharge goes up to Rs 899, which is the highest among domestic categories.
These revised charges will come into effect from 9:01 am IST on April 8.
The surcharge is applied “per passenger, per sector”, which is important for understanding the final ticket cost.
A sector simply means one leg of a journey. For example, a direct flight from Delhi to Mumbai is one sector.
If a passenger books a connecting journey, such as Delhi to Bengaluru via Mumbai, it will be counted as two sectors. In this case, the fuel surcharge will be charged separately for each leg of the trip.
This means passengers on connecting flights may end up paying a higher total surcharge compared to those on direct flights, even if the overall distance is similar.
The change in structure allows airlines to link pricing more closely with distance and fuel use, but it also means ticket costs can vary more depending on route and itinerary.
Air India has increased fuel surcharges on international routes, with a higher impact on long-haul flights. The revised charges vary by region and reflect the rise in global jet fuel prices.
For nearby regions such as SAARC (excluding Bangladesh), passengers will now pay USD 24, which is about Rs 2,232 per passenger per sector.
Flights to West Asia and the Middle East will see a surcharge of USD 50, or roughly Rs 4,650.
Routes to China and Southeast Asia (excluding Singapore) will attract USD 100, which comes to around Rs 9,300.
Flights to Singapore are slightly lower at USD 60, or about Rs 5,580.
Passengers flying to Africa will pay USD 130, which is about Rs 12,090.
For Europe, including the United Kingdom, the surcharge has been set at USD 205, translating to roughly Rs 19,065.
The highest surcharge applies to long-haul routes such as North America and Australia, where passengers will pay USD 280, or about Rs 26,040 per sector.
These revised charges will come into effect from April 8 for most routes, while Europe, North America and Australia changes will apply from April 10.
All USD values have been converted to Indian rupees using an exchange rate of 1 USD = Rs 93 as of 1:30 PM, April 7.
According to data cited in the release, global jet fuel prices have risen to USD 195.19 per barrel by late March, up from USD 99.40 at the end of February, marking a jump of nearly 100%.
At the same time, refining margins, known as crack spreads, have also increased sharply, rising from USD 27.83 to USD 81.44 per barrel within weeks.
This combination has created one of the toughest fuel cost environments for airlines in recent years.
Despite the surcharge hike, Air India said the revised charges do not fully cover the rise in fuel costs, especially on international routes.
This suggests that airlines are still absorbing a part of the increase, even as they pass some of it on to passengers.
The move signals broader pressure across the aviation sector. Fuel is one of the largest cost components for airlines, and sharp increases often lead to higher fares or reduced margins.
With global tensions, including the ongoing West Asia conflict, continuing to push oil prices higher, airlines are likely to remain under cost pressure in the near term.
For passengers, this could mean higher ticket prices, especially on long-haul international routes where fuel costs form a larger part of overall expenses.
Air India said it will review surcharges periodically, indicating that fares could change further depending on how fuel prices move.
