Air India Announces Fuel Surcharge Hike Amid US-Iran War, Airfares Set to Rise

The Tata Group-owned carrier stated that the new surcharge structure will come into effect from April 8 for domestic routes and April 10 for key international sectors. The move follows a steep rise in aviation turbine fuel (ATF) prices, significantly increasing operating costs for airlines worldwide and forcing a recalibration of fare structures.

For domestic travel, Air India has shifted from a flat fuel surcharge to a distance-based model, marking a key operational change. Under the revised structure, passengers flying short-haul routes ranging from 0–500 km will now pay an additional ₹299 per sector. For longer routes exceeding 2,000 km, the surcharge will rise to as much as ₹899, directly impacting ticket pricing across multiple travel segments.

The revision aligns with the government’s decision to cap the increase in domestic ATF prices at 25%, offering partial relief to airlines and passengers. Despite this moderated cap, the increase in fuel costs continues to exert pressure on carriers, and the revised surcharge is expected to push up ticket prices across most sectors.

The development underscores the far-reaching impact of global geopolitical tensions on domestic aviation economics, as rising fuel costs translate into higher travel expenses for passengers across the country.