Air India has announced a phased fuel surcharge on tickets as aviation turbine fuel (ATF) prices surge due to supply disruptions in the Gulf region linked to the ongoing Iran war.
ATF accounts for nearly 40% of airline operating costs, and India’s high excise duty and state VAT have further amplified the burden. To offset these rising expenses, Air India will implement surcharges in three phases:
- Phase 1: ₹399 surcharge on domestic and SAARC routes.
- Phase 2: International routes — $10 for West Asia, $20 for Southeast Asia, and $30 for Africa.
- Phase 3: Planned rollout for Far East destinations including Hong Kong, Japan, and South Korea.
The surcharge applies to both Air India and Air India Express flights. Tickets issued before the rollout remain unaffected unless travel dates or itineraries are changed.
Air India has stated that the surcharge will be reviewed periodically and adjusted based on fuel prices and geopolitical developments. Without such measures, several flights risk becoming financially unsustainable.
