Air India Hikes Fuel Surcharge Again: Here’s How Much Air Asia, Indigo, Akasa Air Are Charging Now
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Air India has revised its fuel surcharge structure for both domestic and international routes, moving to a distance-based system
Tickets already issued before the effective dates will not attract the revised surcharge, unless you make changes that require fare recalculation. (Image: File photo)
With global jet fuel prices nearly doubling amid Iran war tensions, Air India has revised its fuel surcharge structure for both domestic and international routes, moving to a distance-based system for domestic flights and region-specific higher charges for international ones. These changes apply across the entire Air India Group, including Air India Express.
Starting April 8, 2026, Air India has replaced the previous flat rate with a calibrated slab system linked to flight distance per passenger per sector:
0 – 500 km: Rs 299
501 – 1000 km: Rs 399
1001 – 1500 km: Rs 549
1501 – 2000 km: Rs 749
2000+ km: Rs 899 per
This follows the government’s decision to cap the increase in domestic aviation turbine fuel (ATF) prices at 25%.
International Flights
Region-Wise Fuel Surcharge (Effective April 10, 2026)International surcharges are notably higher due to the lack of price controls on aviation fuel abroad. The new rates (in USD per passenger per sector) are:
SAARC (excluding Bangladesh): $24 per passenger per sector
West Asia / Middle East: $50 per passenger per sector
Southeast Asia (excluding Singapore): $100 per passenger per sector
Singapore: $60 per passenger per sector
Africa: $130 per passenger per sector
Europe (including UK): $205 per passenger per sector
North America: $280 per passenger per sector
Australia: $280 per passenger per sector
According to the International Air Transport Association, average jet fuel prices surged to $195.19 per barrel in the week ending March 27, 2026 — up sharply from $99.40 at the end of February. The steep rise stems from higher crude oil prices and increased refining margins, exacerbated by geopolitical tensions in West Asia (Iran war jitters).
Air India noted that the new surcharges “do not fully offset the sharp increase in fuel costs,” and the airline continues to absorb a portion of the impact. The surcharge will be reviewed periodically based on market conditions. Aviation fuel typically accounts for a massive chunk of operating costs — currently the highest burden in years.
At the centre of the continous staggering price hike is fuel. Aviation Turbine Fuel, or ATF, accounts for a significant chunk of airline operating costs, often as much as 40%. With global oil prices surging, airlines are left with little room to absorb the impact. The result is now visible to passengers: fuel surcharges, revised fares, and an uptick in ticket prices.
Important Notes for Travellers
Tickets already issued before the effective dates will not attract the revised surcharge, unless you make changes that require fare recalculation.
The fuel surcharge is charged per passenger per sector and is in addition to base fares and other taxes.
This move comes as several other carriers have also adjusted their fuel charges in response to the same global fuel shock.
Here is list of Indian airlines hiking ticket prices amid West Asia conflict, as reported till 15 March
IndiGo
IndiGo, the country’s largest airline, has introduced a layered surcharge structure that varies sharply depending on distance and destination. Domestic travellers may see smaller increments, but international flyers are bearing the brunt. Routes to Europe now come with an additional Rs 10,000 per sector, while flights to Southeast Asia, Africa, and the Middle East are seeing hikes ranging from Rs 3,000 to Rs 5,000.
Domestic surcharge: Rs 275 – Rs 950 (based on distance)
International surcharge: Rs 900 – Rs 10,000
Europe routes: up to Rs 10,000 per sector
Middle East (GCC): Rs 3,000 – Rs 5,000
Southeast Asia & China: Rs 3,500 – Rs 5,000
Africa: Rs 5,000 per sector
Akasa Air
In the latest announcement, AirAsia confirmed that it will increase airfares by 31% to 40%, introduce a fuel surcharge of around 20%, and cut some flights, especially on less profitable routes, marking a major shift for a budget airline known for keeping fares low.
SpiceJet
SpiceJet Founder Ajay Singh said airlines will have “no choice” but to introduce fuel surcharges as costs continue to climb. He has urged the government to reduce taxes on jet fuel, warning that oil prices nearing $90 a barrel are “completely unsustainable.” Singh added that SpiceJet may even consider grounding aircraft if prices remain high, with airlines likely forced to reassess their expansion plans under such pressure.
Globally, airlines are navigating the same turbulence. That scale of disruption has a cascading effect, tightening capacity, altering routes, and increasing operational strain.
April 07, 2026, 13:45 IST
