New Delhi:Air India Group on Tuesday (March 10) announced a phased expansion of a fuel surcharge on its domestic and international routes. The decision was reportedly taken in the wake of a steep rise in jet fuel prices arising from the ongoing conflict in the Middle East. According to a statement, since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40 per cent 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 cost the impact and placing substantial strain on airline operating economics," the statement read.

The new fuel surcharges are being implemented in three phases, covering travel on all flights, including those operated by Air India Express1.

Phase-Wise Details Of Increase In Surcharge:

In phase 1, the surcharge will be increased for Southeast Asia and Africa from March 12. Notably, now the group will now impose surcharge of Rs 399 for domestic flights . Passengers flying to SAARC nations and the Middle East/West Asia will also have to pay Rs 399 as surcharge amount. For Southeast Asia, the surcharge increased from USD 20 to USD 40, and for Africa, the surcharge increased to USD 90 from USD 60.

Meanwhile, in phase 2, the surcharge is increased for travel to Europe, North America, and Australia. This increase will be applicable for bookings from March 18. The surcharge for Europe will be hiked from USD100 to USD125, while passengers traveling to North America and Australia will have to pay a surcharge of USD 200 instead of USD 150.

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Meanwhile, phase 3 will apply to and from Far East markets, namely Hong Kong, Japan, and South Korea, which will be announced in due course.

What Will Happen To Prior Bookings?

Notably, the revised surcharge will be applicable only to new bookings after the dates mentioned by the group. Tickets that have already been issued will not attract new surcharges except in case passengers reschedule their flights.

Source: India Latest News, Breaking News Today, Top News Headlines | Times Now