Wiretel

Menu
My Wiretel
My Wiretel

Blog

Airfares set to rise again: What Air India’s fuel surcharge means for you | Personal Finance



If you’ve been planning a flight, here’s something you’ll likely notice soon—ticket prices are going up again, and this time it’s because of fuel.

 


The Air India group on Tuesday revised its fuel surcharge across domestic and international routes, citing a sharp rise in global jet fuel prices driven by geopolitical tensions.

 


So what changes for you as a passenger?

 


The biggest impact is simple:

 


You’ll pay more for tickets—especially on new bookings

 


Domestic flights now include a fuel surcharge of ₹399 per ticket

 


International routes have varying charges depending on distance:


  • West Asia: around $10 (₹800+)


  • Southeast Asia: up to $60


  • Africa: up to $90


  • Long-haul (Europe): around $125


  • North America/Australia: up to $200

 


The longer your flight, the higher the surcharge.

 
 


Why are you paying this extra charge?

 


Airlines say this isn’t optional—it’s survival.

 


Aviation fuel accounts for nearly 40% of airline costs

 


  • Jet fuel prices have surged due to:


  • Global supply disruptions


  • Geopolitical tensions in West Asia


  • Currency pressures (fuel is dollar-priced)

 


In fact, fuel prices have seen sharp spikes recently, forcing airlines to pass on part of the cost to passengers.

 


When does this apply?


The surcharge applies to new bookings only


Tickets already booked before the change are not affected

 

 So if you booked earlier, you’re safe—for now.  Following the Ministry of Petroleum & Natural Gas’ and Ministry of Civil Aviation’s decision to cap domestic Aviation Turbine Fuel (ATF) price hike at 25%, Air India group is reflecting this calibrated approach, transitioning from a flat domestic surcharge to a distance-based grid as follows, effective 08 April 2026 (including on Air India Express flights): 


FUEL SURCHARGE PER PASSENGER, PER SECTOR FOR DOMESTIC SECTOR

 


According to the latest data published by the International Air Transport Association (IATA), the global average jet fuel price rose to $195.19 per barrel for the week ending 27 March 2026, up from $99.40 at the end of February, recording a surge of close to 100%. 

 


ATF, produced by refining crude oil, has seen simultaneous increases in both its crude oil component as well as the refinery margin, known as ‘crack spread’, with the latter having nearly tripled within three weeks. It increased from $27.83 per barrel for the week ending 27 February to $81.44 for the week ending 27 March. 

 


This steep rise compounds the impact of rising crude oil prices, creating one of the most challenging fuel cost environments that airlines globally have faced in recent years.

 

“The fuel surcharges on international routes do not compensate for the exponential increase in jet fuel prices for international flights. Air India continues to absorb a significant portion of this increased cost,” Air India said in a statement. 


FUEL SURCHARGE PER PASSENGER, PER SECTOR – BY REGION

 


Revisions to fuel surcharge on flights to and from Bangladesh and Far East destinations, namely Japan, Hong Kong, and South Korea, will be advised in due course subject to the requisite regulatory approvals. 

 


For the avoidance of doubt, tickets that have already been issued prior to the above times will not attract the new surcharge unless customers seek date or itinerary changes that require a recalculation of the fare.

 


Air India will review its surcharges periodically and make appropriate adjustments as the situation requires.

 


Why this matters right now

 


This is not a one-off move.

 


Other airlines like IndiGo and Akasa have also introduced fuel charges


The entire aviation sector is under pressure from rising fuel costs

 


This means:

 


Airfares could stay elevated in the near term


Discounts may become less frequent

 



Source link