NEW DELHI — Air India has officially announced a “phased expansion” of fuel surcharges across its entire domestic and international network, citing the severe geopolitical instability in the Gulf region. The airline warned on Tuesday, March 10, 2026, that without these hikes, several routes would become “uneconomically viable” and face potential cancellation.
The move comes as Aviation Turbine Fuel (ATF) prices have skyrocketed since early March, compounded by high excise duties and VAT in Indian metro hubs like Delhi and Mumbai.
1. Why Fares are Rising
Aviation fuel typically accounts for nearly 40% of an airline’s operating cost. Air India’s decision is a direct response to:
- Gulf Supply Disruptions: The ongoing conflict in West Asia has choked traditional fuel supply lines.
- Operational Strain: The airline stated that the “steep rise” in jet fuel is a factor outside its control, placing “substantial strain” on its economic survival.
- Taxation Pressure: High domestic taxes in India have magnified the global price surge, forcing the carrier to pass costs to passengers.
2. The Three-Phase Rollout Plan
The surcharges are being implemented in stages to manage the transition across different global markets.
| Phase | Effective Date | Affected Routes | Hike Amount |
| Phase 1 | March 12, 2026 | Domestic India & SAARC | ₹399 |
| West Asia / Middle East | $10 (New Surcharge) | ||
| Southeast Asia | $40 to $60 | ||
| Africa | $60 to $90 | ||
| Phase 2 | March 18, 2026 | Europe, North America, Australia | TBA |
| Phase 3 | TBD | Far East (Hong Kong, Japan, S. Korea) | To be announced |
3. Important Note for Existing Bookings
Passengers who have already booked their tickets for travel on or after these dates will not be asked to pay the new surcharge. However, the hike will apply if a customer seeks:
- A change in travel dates.
- An itinerary modification that requires a fare recalculation.