Air India hikes fuel surcharge

The Air India group has announced a fuel surcharge hike for both domestic and international flights, effective April 8, citing a sharp rise in global jet fuel prices. The surcharge will range from ₹299 to ₹899 for domestic routes, while international passengers will face an additional USD 24 to USD 280, depending on distance and sector. The revised charges will also apply to flights operated by its low-cost arm, Air India Express.

The airline said the move follows the government’s decision to cap domestic Aviation Turbine Fuel (ATF) price hikes at 25 per cent, prompting a shift from a flat surcharge to a distance-based structure. However, no such relief exists for international fuel prices, necessitating sharper revisions for overseas travel.

Routes to Bangladesh and Far East destinations, including Japan, Hong Kong and South Korea, are yet to see revised surcharges pending regulatory approvals. Meanwhile, rival carrier IndiGo has already increased its fuel surcharge in response to rising costs.

Citing data from the International Air Transport Association (IATA), Air India noted that global jet fuel prices surged to USD 195.19 per barrel for the week ending March 27, nearly doubling from USD 99.40 at February-end. ATF, which constitutes 40–45 per cent of airline operating costs, has been hit by rising crude oil prices and a steep increase in refinery margins, or “crack spread.” Despite the hike, the airline said international surcharges still do not fully offset escalating fuel costs, adding that it continues to absorb a significant share of the burden.