AIR INDIA HIKES DOMESTIC FARES: PASSENGERS TO PAY RS 299–899 EXTRA

Air India has increased fuel surcharges on both domestic and international routes, as global jet fuel prices have surged sharply, adding to the cost pressure already faced by airlines.

The increase in fuel surcharges comes amid the West Asia war that has led to an energy crisis pushing oil prices higher.

The move reflects how rising fuel costs are starting to directly impact ticket pricing, even as carriers try to absorb part of the increase.

DOMESTIC FARES SEE STRUCTURAL CHANGE

For domestic flights, Air India has moved away from a flat surcharge and introduced a distance-based system. The revised charges will come into effect from April 8.

Passengers flying shorter routes of up to 500 km will pay an additional Rs 299 per sector, while those travelling over 2,000 km will pay up to Rs 899.

This shift follows the government's decision to cap increases in domestic aviation turbine fuel (ATF) prices at 25%, which has helped limit the extent of fare hikes within India.

However, even with this cap, airlines are adjusting pricing structures to manage costs more closely.

INTERNATIONAL ROUTES SEE SHARPER HIKE

The impact is more visible on international routes, where no such fuel price cap exists.

Air India has raised surcharges across regions, with passengers to Europe now paying USD 205 per sector, while those flying to North America and Australia will pay USD 280.

Flights to West Asia will see a surcharge of USD 50, while routes to Southeast Asia are set at USD 100.

These increases come as airlines face a steep jump in fuel costs globally.

FUEL PRICES NEARLY DOUBLE IN WEEKS

According to data cited in the release, global jet fuel prices have risen to USD 195.19 per barrel by late March, up from USD 99.40 at the end of February, marking a jump of nearly 100%.

At the same time, refining margins, known as crack spreads, have also increased sharply, rising from USD 27.83 to USD 81.44 per barrel within weeks.

This combination has created one of the toughest fuel cost environments for airlines in recent years.

Despite the surcharge hike, Air India said the revised charges do not fully cover the rise in fuel costs, especially on international routes.

This suggests that airlines are still absorbing a part of the increase, even as they pass some of it on to passengers.

The move signals broader pressure across the aviation sector. Fuel is one of the largest cost components for airlines, and sharp increases often lead to higher fares or reduced margins.

With global tensions, including the ongoing West Asia conflict, continuing to push oil prices higher, airlines are likely to remain under cost pressure in the near term.

For passengers, this could mean higher ticket prices, especially on long-haul international routes where fuel costs form a larger part of overall expenses.

Air India said it will review surcharges periodically, indicating that fares could change further depending on how fuel prices move.

2026-04-07T07:53:22Z