After IndiGo, Air India set to hike fares amid Iran war. Details here

After IndiGo, Tata-owned Air India is set to increase fares as it hiked fuel surcharges amid the ongoing West Asia conflict involving the US-Israel and Iran. The airline said that the new surcharge structure will come into effect from April 8 for domestic routes and April 10 for key international routes. 

The airline's decision to hike fuel charge follows the Centre's decision to cap domestic aviation turbine fuel (ATF) price hike at 25 per cent. 

"Following the Ministry of Petroleum & Natural Gas' and Ministry of Civil Aviation's decision to cap domestic Aviation Turbine Fuel (ATF) price hike at 25%, Air India group is reflecting this calibrated approach, transitioning from a flat domestic surcharge to a distance‑based grid as follows, effective
08 April 2026 (including on Air India Express flights)," the airline's release read. 

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Fuel surcharge per passenger, per sector

For domestic flights, Air India has moved away from a flat surcharge to a distance-based system. Passengers flying shorter routes of up to 500 km will pay an additional ₹299 per sector, whereas those travelling above 2,000 km will pay up to ₹899. 

The fuel surcharges on international routes do not compensate for the increase in jet fuel prices for international flights, according to the company release. 

Fuel surcharge per passenger, per sector (by region)

In the case of international routes, the impact is more evident as no such fuel price cap exists here. Passengers headed to Europe will now pay $205 per sector, whereas those flying to North America and Australia will pay $280. 

Flights to West Asia will see a surcharge of $50 whereas routes to Southeast Asia are set at $100. 

Last week, IndiGo announced a revision in airfares through higher fuel charges after a rise in aviation turbine fuel (ATF) prices.

With this, the airline became the first to pass on the increase in ATF prices onto customers by announcing new fuel surcharges of up to ₹950 per sector on domestic routes and ₹10,000 on long-haul international flights for all new bookings from April 2. Charges for intermediate distances range between ₹400 and ₹800.