Air India raises fuel surcharge by up to ₹899:Airfares to get costlier; move comes after IndiGo hikes duties

Tata Group-owned Air India has hiked fuel surcharge once again in the wake of rising jet fuel prices due to crude oil supply disruptions owing to the West Asia conflict. The airline has this time increased the surcharge by ₹299 to ₹899. Air India press release on fuel surcharge hike for domestic flights: The fuel surcharge hike for all domestic flights are effective from 9 am on Wednesday, 8 April 2026. Press release on fuel surcharge hike regarding international flights: The fuel surcharge hike for flights on select international routes are effective from 9 am on Wednesday, 8 April 2026, while on some routes these come into effect from 12 am on Friday, 10 April.
Will Air India Group revise prices of tickets already booked? The press release also reads, “For the avoidance of doubt, tickets that have already been issued prior to the above times will not attract the new surcharge unless customers seek date or itinerary changes that require a recalculation of the fare.” Tata Group carrier’s latest move follows IndiGo’s Before this,the country’s largest airline IndiGo had also made changes to the fuel surcharge. IndiGo had removed the earlier flat surcharge of ₹425 and implemented a new distance-based structure. Domestic Routes: A fuel surcharge ranging from ₹275 to ₹950 was levied based on distance. This was a relief for short-distance flights, but long-distance domestic flights had become expensive. International Routes: This was where the maximum impact was felt. On long-haul routes like Europe, IndiGo had increased the fuel surcharge up to ₹10,000. Govt hiked ATF rates The Central Government had increased the ATF price for domestic airlines by 8.6% to ₹1.04 lakh per kilolitre and doubled the jet fuel rates to ₹2.07 lakh/kl for non-scheduled, adhoc and charter carriers. Jet fuel is 40% of airlines’ cost Aviation sector experts say that fuel accounts for about 40% of any airline’s total operating cost. In such a situation, even a slight change in ATF prices directly impacts airlines’ profits. Airlines argue that due to increased costs, they are forced to pass this burden onto passengers What is Fuel Surcharge? When oil prices increase significantly in the international market, airlines add an additional charge to the ticket instead of increasing the base fare, which is called fuel surcharge. When oil prices decrease, it can be reduced or removed, whereas changing the base fare is somewhat complex.