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New Delhi: The Air India group on Tuesday announced a fresh hike in fuel surcharge on domestic and international flights, days after a similar move by IndiGo, signalling a broader rise in airfares amid a sharp spike in Aviation Turbine Fuel (ATF) prices.
The increase comes amid surging global jet fuel costs. According to the International Air Transport Association (IATA), jet fuel prices have nearly doubled within a month—one of the steepest increases in recent years—putting significant cost pressure on airlines.
For domestic travel, Air India will introduce a distance-based fuel surcharge from April 8, replacing the previous flat-rate structure. The revision follows a government decision—by the Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation—to cap the pass-through of ATF price hikes at 25 per cent, offering limited protection to passengers.
Under the revised domestic fare structure, passengers will pay:
- ₹299 for flights up to 500 km
- ₹399 for 501–1,000 km
- ₹549 for 1,001–1,500 km
- ₹749 for 1,501–2,000 km
- ₹899 for distances above 2,000 km per sector
These charges will also apply to services operated by Air India Express.
On international routes, where no such cap exists, the airline has announced a steeper increase. Air India said global jet fuel prices surged to USD 195.19 per barrel by late March, up from USD 99.40 at the end of February—reflecting a near 100 per cent jump.
Revised international fuel surcharges include:
- USD 50 for West Asia routes
- USD 100 for Southeast Asia and USD 60 for Singapore
- USD 130 for Africa
- USD 205 for Europe, including the United Kingdom
- USD 280 for North America and Australia (effective April 10)
The airline said the revised surcharge still does not fully offset the spike in fuel costs, and it continues to absorb part of the burden to avoid sharper fare increases. Passengers who have already booked tickets before the effective dates will not be affected unless they make changes that require fare recalculation. With both Air India and IndiGo revising fuel charges within a short span, industry observers expect airfares to rise across routes, particularly during the peak summer travel season, as elevated ATF prices continue to weigh heavily on airline operating costs.
