Impact of Iran war on air travel, Air India increases fuel surcharge by Rs 899; Now flight tickets will be expensive

Air India Fuel Surcharge Hike: The war that has been going on between Iran and Israel for the last six weeks is now having an impact on air passengers. Following the sharp increase in jet fuel (ATF) prices globally, Air India has decided to increase fuel surcharge on domestic and international flights. The new surcharges will be applicable on domestic flights from April 8, 2026. This will put an additional burden of up to Rs 899 on passengers’ pockets. Whereas, this change is going to be implemented on international routes from April 10. Under this, a surcharge of up to $280 will be charged.

According to the airline company, there has been a sharp increase in the prices of jet fuel in the last few weeks. The average price of jet fuel reached $195 a barrel in the last week of March, up from about $99 at the end of February, according to International Air Transport Association (IATA) data. This sharp increase has significantly increased costs for airlines, putting pressure on fares.

Surcharge will now be charged according to distance

According to The Economic Times report, till now a uniform surcharge was charged on domestic flights, but now it has been decided on the basis of distance. That means, the longer the journey, the higher the fee will have to be paid. This new rule will be applicable to all flights of Air India Group, including Air India Express also includes. The government has tried to limit the increase in ATF prices to 25 percent, but despite this, airlines have had to take this step to balance costs.

Maximum impact on international flights

There is no control on fuel prices on international flights, hence the surcharge has been increased there. The fee has been fixed according to different regions, with the lowest fee being imposed for SAARC countries and the highest for North America and Australia. This could make long distance international travel more expensive.

Area Fuel Surcharge (in dollars)

• SAARC (except Bangladesh) $24
• West Asia / Middle East $50
• South-East Asia (except Singapore) $100
• Singapore $60
• Africa $130
• Europe (including UK) $205
• North America $280
• Australia $280

Despite surcharge, burden on company

Air India says that despite the new surcharge, the increased fuel cost is not being fully recovered. The company is still bearing a part of the expenses itself. The increase in fuel prices is not only due to crude oil but also due to increase in refining margins.

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Relief to people who have already booked tickets

Please note that this will apply to passengers who have purchased tickets before 8th or 10th April 2026. new surcharge Will not apply. However, if changes are made to the ticket and the fare is revised, these charges may apply. The airline has indicated that this surcharge may be reviewed in future as per the market situation.