Flying set to get costlier: Air India hikes fuel surcharge amid Hormuz disruption
The price of ATF, which constitutes nearly 40% of its operating costs, has escalated sharply since early March 2026 due to supply interruptions
- Mar 10, 2026,
- Updated Mar 10, 2026 9:55 PM IST
Air India announced on Tuesday that it will implement a phased expansion in fuel surcharges for both its domestic and international routes, prompted by the significant rise in aviation turbine fuel (ATF) prices due to disruptions caused by the ongoing conflict in the Gulf region and the effective closure of the Strait of Hormuz.
Also read: India's domestic LPG production up by 10%, more LNG & LPG supplies are arriving: Top govt officials
The airline explained that the price of ATF, which constitutes nearly 40% of its operating costs, has escalated sharply since early March 2026 due to supply interruptions.
"In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the cost impact and placing substantial strain on airline operating economics," the Tata-owned airline said.
Also read: UAE's biggest oil refinery halts operations after drone strike causes fire
The new fuel surcharge will be implemented in three phases. Phase 1, which applies to all new bookings made from March 12, will see domestic passengers and those flying within the SAARC region charged an additional Rs 399. Passengers traveling to the West Asia and Middle East regions will face a $10 surcharge, while the surcharge for Southeast Asia will rise from $40 to $60. Travel to Africa will see a rise from $60 to $90.
Phase 2, effective from March 18, will raise surcharges on long-haul routes, including flights to Europe, North America, and Australia. The surcharge for Europe will rise from $100 to $125, while passengers traveling to North America and Australia will face a surcharge increase from $150 to $200.
The airline stated that the surcharge revision would apply to all new bookings made after the respective dates. However, tickets already issued will not incur the new surcharges unless customers make changes to their travel dates or itineraries.
Air India expressed regret over the need to impose these surcharges, noting that the decision was driven by external factors beyond its control. "Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled."
Air India said it will review its surcharges periodically and make appropriate adjustments as the situation requires.
Air India Express, a subsidiary of Air India, currently does not apply fuel surcharges on its flights.
Air India announced on Tuesday that it will implement a phased expansion in fuel surcharges for both its domestic and international routes, prompted by the significant rise in aviation turbine fuel (ATF) prices due to disruptions caused by the ongoing conflict in the Gulf region and the effective closure of the Strait of Hormuz.
Also read: India's domestic LPG production up by 10%, more LNG & LPG supplies are arriving: Top govt officials
The airline explained that the price of ATF, which constitutes nearly 40% of its operating costs, has escalated sharply since early March 2026 due to supply interruptions.
"In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the cost impact and placing substantial strain on airline operating economics," the Tata-owned airline said.
Also read: UAE's biggest oil refinery halts operations after drone strike causes fire
The new fuel surcharge will be implemented in three phases. Phase 1, which applies to all new bookings made from March 12, will see domestic passengers and those flying within the SAARC region charged an additional Rs 399. Passengers traveling to the West Asia and Middle East regions will face a $10 surcharge, while the surcharge for Southeast Asia will rise from $40 to $60. Travel to Africa will see a rise from $60 to $90.
Phase 2, effective from March 18, will raise surcharges on long-haul routes, including flights to Europe, North America, and Australia. The surcharge for Europe will rise from $100 to $125, while passengers traveling to North America and Australia will face a surcharge increase from $150 to $200.
The airline stated that the surcharge revision would apply to all new bookings made after the respective dates. However, tickets already issued will not incur the new surcharges unless customers make changes to their travel dates or itineraries.
Air India expressed regret over the need to impose these surcharges, noting that the decision was driven by external factors beyond its control. "Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled."
Air India said it will review its surcharges periodically and make appropriate adjustments as the situation requires.
Air India Express, a subsidiary of Air India, currently does not apply fuel surcharges on its flights.