Air India Imposes Fuel Surcharge

India and its subsidiary, Air India — Air India Express, announced a phased expansion of fuel surcharges on both domestic and international routes, effective from March 12, 2026. This decision was necessitated by a steep rise in jet fuel prices, which account for nearly 40% of an airline's operating costs, attributed to supply interruptions and the geopolitical situation in the Middle East, specifically mentioning the US-Israel-Iran conflict. The surcharges will be implemented in three phases, with the first phase applying to new bookings from March 12, affecting domestic routes within India, SAARC countries, West Asia, Middle East, Southeast Asia, and Africa. Flights to and from Singapore, which previously had no surcharge, will now be subject to it. Phase 2, starting March 18, will increase surcharges for flights to Europe, North America, and Australia. A third phase for Far East markets will be announced later. India stated that without these surcharges, some flights might be cancelled due to inability to cover operating costs. Tickets issued before the implementation dates will not be affected unless changes are requested.