Air India to increase ticket prices with new fuel surcharge amid oil price surge

Air India has announced that flight tickets are set to become more expensive following a fresh expansion of fuel surcharge as rising oil prices linked to the ongoing Middle East crisis continue to impact the aviation sector.

In an official statement issued on Tuesday, the airline said the surcharge will be introduced in a phased manner and will apply to both domestic and international routes.

The first phase, effective from March 12, 2026, marks a significant change for passengers traveling on shorter routes. Domestic flights and routes to SAARC countries, which were previously exempt from additional levies, will now attract a fuel surcharge of Rs 399.

The move comes as airlines globally face mounting operational costs due to higher crude oil prices, driven in part by geopolitical tensions in the Middle East affecting supply routes and market stability.

Fuel surcharges are commonly used by airlines to offset volatility in aviation turbine fuel prices, which represent a major portion of operating expenses.

Industry analysts say the phased approach adopted by Air India allows the airline to gradually adjust fares while monitoring market conditions, though passengers can expect overall travel costs to rise in the coming weeks.

Further phases of the surcharge expansion, including potential revisions for long-haul international routes, are expected to be announced depending on fuel price trends and market dynamics.