New Delhi | April 7, 2026 | SKY LINK TIMES
Air India Fuel Surcharge Hike 2026 Oil Price Impact:
Air India has announced a revision in fuel surcharge for both domestic and international routes following a sharp surge in global jet fuel prices, a move that is expected to make air travel costlier for passengers.
The airline said the revised surcharge structure will come into effect from Wednesday, with notable changes in how charges are calculated, especially for domestic flights.
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Domestic Flights to See Distance-Based Charges
For domestic routes, Air India has shifted from a flat fuel surcharge to a distance-based model. Under the new structure, passengers will pay between ₹299 for flights up to 500 km and ₹899 for routes exceeding 2,000 km.
The revision comes after the government capped the increase in domestic Aviation Turbine Fuel (ATF) prices at 25 per cent, allowing airlines to partially pass on the cost burden while maintaining affordability.
International Routes Face Steeper Hike
In contrast, international routes will witness sharper increases due to the absence of similar price controls on ATF. Fuel surcharge will now vary depending on the destination.
Passengers flying to SAARC countries (excluding Bangladesh) will pay a surcharge starting from $24, while long-haul routes such as North America and Australia will see charges go up to $280. Flights to Europe will attract a surcharge of around $205.
Global Oil Price Surge Behind the Move
Citing data from the (IATA), the airline noted that global jet fuel prices surged to $195.19 per barrel for the week ending March 27, nearly doubling from $99.40 at the end of February.
The spike has been driven by rising crude oil prices and increased refining margins, with the ‘crack spread’ widening significantly in recent weeks. This has created one of the toughest fuel cost environments for airlines in recent years.
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Airlines Absorbing Part of the Cost
Despite the hike, Air India stated that the revised surcharges do not fully offset the steep increase in fuel costs, and the airline continues to absorb a significant portion of the financial impact.
Passengers who booked tickets before the implementation of the revised surcharge will not be affected unless they make changes that require fare recalculation.
Industry-Wide Trend
The move follows similar action by other carriers, including , which recently increased fuel charges due to rising ATF prices.
With global oil markets remaining volatile, aviation experts warn that ticket prices may continue to fluctuate in the coming months, impacting both domestic and international travel demand.
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