Air India Imposes Fuel Surcharge as Gulf Crisis Drives Jet Fuel Prices Up

• Air India introduces phased fuel surcharges on domestic and international routes due to a sharp rise in Aviation Turbine Fuel (ATF) prices.
• ATF costs, accounting for 40% of operating expenses, surged since early March 2026, driven by the ongoing West Asia crisis.
• Phase 1, effective March 12, 2026, adds INR 399 to domestic/SAARC routes and USD 10-30 to various international flights.
• Phase 2, from March 18, 2026, increases surcharges by USD 25 for Europe and USD 50 for North America/Australia routes.
• New charges apply only to new bookings; industry warns of potential broader fare hikes and reassessed expansion plans due to rising costs.