The Air India group on Tuesday said it will impose fuel surcharge ranging from ₹299 to ₹899 for domestic flights and $24 to $280 for international flights (excluding some routes).

The revised fuel surcharge, effective from April 8 will be applicable for flights operated by the airline's low-cost subsidiary Air India Express as well, Air India said in a statement.

Revisions to fuel surcharge on flights to and from Bangladesh and Far East destinations such as Japan, Hong Kong and South Korea, will be advised in due course subject to the requisite regulatory approvals, it said.

Following the government's decision to cap domestic Aviation Turbine Fuel (ATF) price hike at 25 per cent, Air India group has adopted this calibrated approach, transitioning from a flat domestic surcharge to a distance-based grid, the airline said.

Further, in the absence of any mitigation on international ATF prices, the Air India group will be implementing more significant changes to fuel surcharges.

The other domestic carrier IndiGo has already revised an upward revision in fuel surcharge.

Citing latest International Air Transport Association (IATA) data, the airline said the global average jet fuel price rose to $195.19 per barrel for the week ending March 27, up from $99.40 at the end of February, recording a surge of close to 100 per cent.

ATF accounts for almost 40-45 per cent of an airline's total cost.

ATF, produced by refining crude oil, has seen simultaneous increases in both its crude oil component as well as the refinery margin, known as 'crack spread', with the latter having nearly tripled within three weeks.

It increased from $27.83 per barrel for the week ending February 27 to $81.44 for the week ending March 27, Air India said, adding this steep rise compounds the impact of rising crude oil prices, creating one of the most challenging fuel cost environments that airlines globally have faced in recent years.

The fuel surcharges on international routes do not compensate for the exponential increase in jet fuel prices for international flights.

Air India continues to absorb a significant portion of this increased cost, the company said.

Published on April 7, 2026