Air India Ticket Price Hike Amid Iran War: You Will Have To Pay Fuel Surcharge, Check Details

Passengers travelling with Air India will soon see a rise in ticket prices after the airline announced a new fuel surcharge because of increasing jet fuel costs.

In a statement, the airline said it will add a Rs 399 surcharge on domestic flight tickets from March 12. Air India also confirmed that the fuel surcharge for international flights will be increased, though the exact amount may vary depending on the route.

It must be noted that the airline surcharge will be introduced in phases starting March 12, as fuel costs have increased significantly following supply disruptions linked to fresh conflict in the Gulf region.

According to the airline, the move is necessary to manage rising operational expenses, as fuel remains one of the largest costs for airlines.

Jet Fuel Prices Rising Due To Supply Disruptions

Air India said aviation turbine fuel prices have increased sharply since early March. The rise is largely linked to supply disruptions caused by tensions and conflict in the Gulf region, which plays a major role in global energy supply.

The airline explained that ATF accounts for nearly 40% of airline operating costs, making it a critical factor affecting ticket prices.

In India, the impact of rising fuel prices is even greater because aviation fuel is subject to high taxes. Major metro cities such as Delhi and Mumbai impose significant excise duty and value-added tax on ATF, increasing the financial burden on airlines.

Phase One: Surcharge On Domestic And Nearby International Flights

In the first phase, which will apply to new bookings made from March 12, Air India will introduce a ₹399 fuel surcharge on domestic flights.

The surcharge will also apply to flights to nearby South Asian countries that are part of the South Asian Association for Regional Cooperation (SAARC). These destinations include countries such as Nepal, Sri Lanka and Bangladesh.

Previously, these routes did not include a fuel surcharge.

In addition, the airline will introduce a $10 fuel surcharge on flights to West Asia, where no such fee existed earlier.

Surcharge Increased On Southeast Asia And Africa Routes

For some international routes, the airline will increase existing fuel surcharges.
Flights to Southeast Asian destinations will now have a surcharge of $60, up from $40. Meanwhile, passengers travelling to African destinations will pay $90, compared to the earlier $60 surcharge.

Air India said these adjustments are necessary to cope with rising fuel costs and maintain operations across international routes.

Phase Two: Higher Charges On Long-Haul Flights

A second phase of the surcharge revision will begin from March 18, affecting bookings made on or after that date.

Under this phase:

• Flights to Europe will see the fuel surcharge rise from $100 to $125.
• Flights to North America and Australia will see the surcharge increase from $150 to $200.

These long-haul routes require more fuel, making them more sensitive to fluctuations in global fuel prices.

Additional Changes For Far East Routes Expected

Air India also said a third phase of fuel surcharge changes will be announced later. This phase will cover Far East destinations such as:

• Hong Kong
• Japan
• South Korea

The airline said further details about these adjustments will be shared in the coming weeks.

Existing Tickets Will Not Be Affected

Air India clarified that tickets issued before the implementation dates will not be affected by the new surcharge.

However, if passengers make changes to their travel date or itinerary that require a new fare calculation, the updated surcharge may apply.

The airline also confirmed that the surcharge will apply to all flights operated under the Air India group, including those run by Air India Express.

Rising Costs Impact Airline Industry

The announcement highlights how global geopolitical tensions and fuel supply disruptions can quickly affect airline operations and ticket prices.

With fuel representing a major share of airline costs, carriers often introduce fuel surcharges to manage rising expenses while continuing to operate flights efficiently.
For passengers, the change means that air travel with Air India could become slightly more expensive in the coming weeks as the airline adjusts fares to cope with higher fuel costs.