When it comes to conflict in the Middle East, India’s fuel dependence is already causing chaos across various sectors, with F&B being majorly affected. Aviation is running smoothly, but fuel costs are rising. And Air India has taken appropriate measures to cover some of the extra costs for the time being.
Air India increases fuel surcharges and adds new ones effective March 12, 2026
Air India Group has announced a phased increase in a fuel surcharge on its domestic and international routes, necessitated by the steep rise in jet fuel prices driven by the geopolitical situation in the Gulf region. Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40% 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 impact and placing substantial strain on airline operating economics.
The new fuel surcharges are being implemented in three phases, covering travel on all flights, including those operated by Air India Express, as follows:
Phase 1 (for all new bookings made from 0001 hours India Standard Time on 12 March 2026), domestic and SAARC bookings will see an INR 400 price rise, and regionally, prices will go up between INR 1000 and INR 3000.
Phase 2 (for all new bookings made from 0001 hours India Standard Time on 18 March 2026), and the European flights go up INR 2500 and American/Australian flights go up by INR 5000 or so.
Phase 3 will apply to and from Far East markets, namely Hong Kong, Japan, and South Korea, which will be announced in due course.
For the avoidance of doubt, bookings made prior to the above times will not incur the new surcharge unless customers request date or itinerary changes that require a fare recalculation.
Air India said the need to increase fuel surcharges is necessitated by factors outside its control. Absent such fuel surcharges, some flights would likely be unable to cover operating costs and would have to be cancelled. Air India also stated that it will review its surcharges periodically and make appropriate adjustments as the situation requires.
Needless to say, the fuel surcharges will also be collected on Air India tickets issued as redemptions via Air India’s Maharaja Club programme (but not if booked via United Mileage Plus)
How to save money with coupon codes?
Air India, on the other hand, also has some major coupon codes out there when you book your tickets on Air India’s own website.
- Flat INR 500 OFF Domestic & INR 1000 OFF International Flights + Up to 20% OFF Excess Baggage using promocode SAVERAI. Valid for International Travel to Maldives, Nepal, Bangladesh, Sri Lanka, Africa, Saudi Arabia, UAE, Oman, Israel, SEA (Singapore, Thailand, Vietnam, Hong Kong).
- Up to INR 2000 OFF per Passenger on International Flights + Up to 20% OFF Excess Baggage using promocode AIFLY
- Far East (Korea, Japan) get INR 1,200 off one way and INR 1,800 Round Trip
- Europe/UK, US, Canada and Australia get INR 1,500 off one way and INR 2,000 off a round trip
- Up to INR 3000 off per passenger using BOBCARD Credit Cards with Promocode BOBAIFLY Excluding South Asia:
- INR 2000 off per passenger for One-way international bookings
- INR 3000 off per passenger for round-trip international bookings
You can book your tickets on AirIndia.com by using these codes.
Bottomline
Air India and Air India Express are beginning to implement fuel surcharges on domestic tickets due to the conflict in the Middle East. Not just that, they will also increase the fuel surcharge on tickets booked for international long-haul travel to Europe, North America / Australia. The changes are going live on a regional level today (for tickets booked here on), and on a long/ultra-long-haul level in a week from now. However, if you have already booked your ticket, you won’t be charged extra.
What do you make of the new and enhanced Air India Fuel Surcharges? Fair or not?
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