New Delhi, March 10 Airfares are set to rise as Air India and Air India Express have decided to levy a fuel surcharge of Rs 399 on each domestic flight ticket from March 12, and also increase the charge for international bookings due to a steep rise in jet fuel prices amid the Middle East conflict.
The new fuel surcharges will be implemented in phases.
Air India expressed regret over the need for fuel surcharges, saying that "without such surcharges, it is likely that some flights would be unable to cover operating costs and would have to be cancelled."
In the first phase, a fuel surcharge of Rs 399 per domestic flight ticket will be imposed from March 12, and the same will also apply to SAARC flights, a statement said on Tuesday.
For flights to West Asia, the fuel surcharge will be USD 10, and it will be increased to USD 90 for flights to Africa and USD 60 for Southeast Asia services.
All these changes will be effective from March 12, including for flights to and from Singapore. Currently, there is no fuel surcharge for Singapore services.
In the second phase, Air India will increase the fuel surcharge by USD 25 to USD 50 for flights to Europe, North America, and Australia, starting from March 18.
The fuel surcharge for flights to Europe will rise from USD 100 to USD 125, and for flights to North America, it will increase from USD 150 to USD 200.
According to the statement, the fuel surcharge for flights to Australia will increase from USD 150 to USD 200.
Currently, Air India Express does not levy fuel surcharges on any of its flights.
"The Air India group today announced a phased expansion of a fuel surcharge on its domestic and international routes, necessitated by the steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region," the statement said.
Since early March 2026, the statement said that Aviation Turbine Fuel (ATF), which accounts for nearly 40 per cent of an airline's operating costs, has seen significant price escalation due to supply interruptions.
"In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the cost impact and placing substantial strain on airline operating economics," it said.
For the avoidance of doubt, the statement said that 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.
There were no announcements regarding fuel surcharges from IndiGo, SpiceJet, and Akasa Air.