Tata Group-led Air India group on Tuesday (April 7, 2026) said it will revise its fuel surcharge structure for both domestic and international routes.

The airline cited the changes to domestic surcharges following the Centre’s decision to cap domestic Aviation Turbine Fuel (ATF) price increases at 25 per cent. 

The revision comes amid an exponential rise in ATF prices linked to the ongoing Gulf crisis. 

Accordingly, the group will transition from a flat surcharge to a distance-based grid effective April 8, 2026, including on Air India Express flights.

Under the revised structure, fuel surcharge per passenger per sector will range from ₹299 for distances up to 500 km to ₹899 for sectors above 2,000 km. 

Specifically, the surcharge has been set at ₹399 for 501–1,000 km, ₹549 for 1,001–1,500 km, and ₹749 for 1,501–2,000 km.

However, for international routes, the airline indicated more significant revisions in the absence of similar regulatory mitigation on ATF prices. 

As per data published by the International Air Transport Association, the global average jet fuel price rose to $195.19 per barrel for the week ending March 27, 2026, from $99.40 at the end of February, marking an increase of close to 100 per cent.

In addition, refinery margins, or crack spreads, nearly tripled within three weeks, increasing from $27.83 per barrel for the week ending February 27 to $81.44 per barrel for the week ending March 27. 

The airline stated that this has compounded the impact of rising crude oil prices.

Notably, the revised fuel surcharges on international routes will vary by region. 

For flights effective April 8, 2026, the surcharge has been set at $24 for SAARC (excluding Bangladesh), $50 for West Asia and the Middle East, $100 for China and South-East Asia (excluding Singapore), $60 for Singapore, $130 for Africa, and $205 for Europe including the UK. 

On the North America and Australia routes, the revised surcharge of $280 will be effective from April 10, 2026.

The airline noted that these surcharges do not fully offset the increase in jet fuel costs for international operations and that it continues to absorb a significant portion of the impact.

Furthermore, revisions to fuel surcharge on flights to and from Bangladesh and Far East destinations, including Japan, Hong Kong, and South Korea, will be announced later, subject to regulatory approvals.

Separately, IndiGo had earlier introduced a fuel charge on domestic routes based on distance bands. 

The surcharge ranges from ₹300 to ₹1,000 per passenger, depending on the sector length.

Published on April 7, 2026