The move follows a recent decision by the Ministry of Petroleum & Natural Gas and the Ministry of Civil Aviation to cap domestic aviation turbine fuel (ATF) price hikes at 25 per cent, amid fallout from the West Asia conflict that has driven sharp increases in crude oil and jet fuel prices. Tata Group-owned Air India said the revised surcharges will be effective April 8, 2026, including on Air India Express flights.

For domestic sectors, the new surcharges will range from Rs 299 for flights up to 500 km, Rs 399 for 501-1,000 km, Rs 549 for 1,001-1,500 km, Rs 749 for 1,501-2,000 km, and Rs 899 for flights over 2,000 km. "Air India group is reflecting this calibrated approach, transitioning from a flat domestic surcharge to a distance-based grid," the airline said.

Global jet fuel prices have surged sharply. According to the International Air Transport Association (IATA), average jet fuel prices reached $195.19 per barrel for the week ending March 27, 2026, up from $99.40 at the end of February - nearly a 100 per cent increase. ATF, refined from crude oil, has risen both in crude costs and refinery margins ('crack spread'), which nearly tripled from $27.83 per barrel for the week ending February 27 to $81.44 for the week ending March 27. "This steep rise compounds the impact of rising crude oil prices, creating one of the most challenging fuel cost environments airlines globally have faced in recent years," the airline said.

For international routes, surcharges do not fully offset ATF costs, with Air India absorbing a significant portion. The revised surcharges per passenger will be $24 for SAARC countries (excluding Bangladesh), $50 for West Asia and the Middle East, $100 for China and Southeast Asia (excluding Singapore), $60 for Singapore, $130 for Africa, $205 for Europe including the UK, and $280 for North America and Australia - effective April 10, 2026. Tickets issued prior will not attract new charges unless travel changes require recalculation.

Recently, IndiGo also revised its fuel surcharges to a distance-based structure, with domestic rates from Rs 275 to Rs 950 and international long-haul routes rising up to Rs 10,000.

Indian Association of Tour Operators (IATO) President Ravi Gosain said, "Airfares are expected to remain firm, supported by travel demand and peak seasons. Competition will act as a natural check, so moderately elevated prices may continue, but sharp spikes are unlikely unless ATF prices escalate further."