Air India announces new fuel surcharge slabs from April 8

Air India on Tuesday announced a revision in fuel surcharges for both domestic and international flights , citing a sharp rise in global jet fuel prices. The revised charges will come into effect from April 8 and will also apply to flights operated by its low-cost subsidiary, Air India Express.

Under the new structure, domestic passengers will face a fuel surcharge ranging from Rs 299 to Rs 899 , depending on the distance travelled. For international routes, the surcharge will range between USD 24 and USD 280 , although some routes are currently excluded. The airline added that revisions for flights to Bangladesh and Far East destinations such as Japan, Hong Kong, and South Korea will be announced later, subject to regulatory approvals.

The airline said the move follows the government’s decision to cap the increase in domestic Aviation Turbine Fuel (ATF) prices at 25 per cent. In response, Air India has shifted from a flat surcharge model to a distance-based grid system for domestic travel, aiming to distribute costs more proportionately.

However, the absence of similar regulatory relief for international ATF prices has forced the airline to introduce steeper surcharges on overseas routes . Industry peer IndiGo has also implemented a similar upward revision in fuel surcharges.

Citing data from the International Air Transport Association, Air India noted that the global average jet fuel price nearly doubled , rising to USD 195.19 per barrel for the week ending March 27 from USD 99.40 at the end of February.

Fuel costs remain a major expense for airlines, accounting for nearly 40-45 per cent of total operating costs . The airline highlighted that ATF prices have surged due to simultaneous increases in crude oil prices and refinery margins, known as the ‘crack spread’ , which nearly tripled within three weeks.

Despite the surcharge hike, Air India said the revised rates do not fully offset the steep rise in fuel costs , adding that the airline continues to absorb a significant portion of the financial burden amid one of the most challenging cost environments in recent years.