Air India Fuel Surcharge: Passengers to Pay Up to $200 Extra Amid ATF Price Hike During Iran War
Starting March 12, 2026, Air India passengers will experience an increase in flight ticket costs due to a rise in aviation turbine fuel (ATF) prices, driven by supply interruptions caused by the ongoing conflict between the United States, Israel, and Iran. The airline announced that the surcharge will affect both domestic and international routes, including those on Air India Express flights. The price escalation is partly due to supply disruptions exacerbated by the war in the Middle East, with ATF now costing significantly more, impacting airlines' operational costs.
Phase 1: Domestic and Regional Routes
In the first phase, effective from March 12, domestic flights and travel to SAARC countries, previously free from additional levies, will now see a surcharge of INR 399. Additionally, passengers flying to the Middle East will be charged a $10 surcharge. For Southeast Asia, the surcharge increases by $20, making the total levy $60, while the surcharge to Africa will rise from $60 to $90.
| Route | New Surcharge | Previous Surcharge |
|---|---|---|
| Domestic flights | ₹399 | None |
| SAARC countries | ₹399 | None |
| Middle East | $10 | Not specified |
| Southeast Asia | $60 | $40 |
| Africa | $90 | $60 |
Phase 2: Long-Haul Routes
Starting March 18, 2026, the second phase will introduce higher surcharges for long-haul routes. Travel to Europe will see an increase of $25, raising the surcharge from $100 to $125. Passengers traveling to North America and Australia will face a $50 hike, with the new surcharge set at $200 for both destinations.
| Route | New Surcharge | Previous Surcharge |
|---|---|---|
| Europe | $125 | $100 |
| North America | $200 | $150 |
| Australia | $200 | $150 |
Phase 3: Far East Routes
A third phase, which will affect travel to destinations in the Far East, such as Hong Kong, Japan, and South Korea, will be announced later.
Impact on Existing Bookings
Air India clarified that passengers who have already booked tickets prior to the surcharge implementation will not be impacted, unless they change their travel dates or itineraries, in which case the new fare will apply.









