Air India Imposes Emergency Fuel Surcharges
Air India announced on March 10 that it would impose emergency fuel surcharges on all tickets — domestic and international — effective March 12, 2026, citing the "extraordinary and unforeseen increase in Aviation Turbine Fuel (ATF) costs" stemming from the US-Israel-Iran conflict and concurrent rupee depreciation.
Surcharge Structure
- Domestic routes (under 750 km): ₹500 per sector, per passenger
- Domestic routes (over 750 km): ₹750 per sector, per passenger
- Short-haul international (under 3,500 km): $15 per sector
- Long-haul international (3,500 km+): $30 per sector
The surcharge applies to new bookings only; passengers with existing bookings prior to March 10 will not be retroactively charged.
ATF Price Context
Aviation Turbine Fuel prices in India are revised on the 1st and 16th of each month by IOC, BPCL, and HPCL. The last revision on March 1 set ATF at ₹1,08,740 per kilolitre in Delhi. With crude prices staying elevated, the March 16 revision is expected to push prices above ₹1,15,000/kl — a 40% increase in two weeks. Fuel accounts for approximately 38–45% of an airline's operating costs.
Industry Response
IndiGo, SpiceJet, and Akasa Air are expected to announce similar surcharges within 48 hours. IndiGo's CEO, Pieter Elbers, said the airline was "monitoring the situation closely" and that "passenger safety and schedule integrity remain our top priorities." SpiceJet, which was already operating under financial stress, may find the fuel cost spike existential — its share price fell 11% on March 10.
