Air India Hikes Fuel Surcharge Again: Here's How Much Air Asia, Indigo, Akasa Air Are Charging Now

With global jet fuel prices nearly doubling amid Iran war tensions, Air India has revised its fuel surcharge structure for both domestic and international routes, moving to a distance-based system for domestic flights and region-specific higher charges for international ones. These changes apply across the entire Air India Group, including Air India Express.

Air India will introduce a revised fuel surcharge structure from April 8, 2026, replacing the earlier flat rate with a distance-based slab system ranging from Rs 299 for flights up to 500 km to Rs 899 for sectors above 2,000 km per passenger. The move comes after the government capped the increase in domestic aviation turbine fuel prices at 25%.

For international routes, effective April 10,

2026, fuel surcharges will be significantly higher due to the absence of price controls on aviation fuel overseas. Charges will range from $24 per passenger for SAARC routes (excluding Bangladesh) to $280 for long-haul destinations such as North America and Australia, with Europe set at $205 and regions like Southeast Asia, the Middle East and Africa falling in between.

According to the International Air Transport Association, average jet fuel prices surged to $195.19 per barrel in the week ending March 27, 2026 up sharply from $99.40 at the end of February. The rise stems from higher crude oil prices and increased refining margins, exacerbated by geopolitical tensions in Middle East.

At the centre of the continous staggering price hike is fuel. Aviation Turbine Fuel, or ATF, accounts for a significant chunk of airline operating costs, often as much as 40%. With global oil prices surging, airlines are left with little room to absorb the impact. The result is now visible to passengers: fuel surcharges, revised fares, and an uptick in ticket prices.

Important Notes for Travellers

Tickets already issued before the effective dates will not attract the revised surcharge, unless you make changes that require fare recalculation.
The fuel surcharge is charged per passenger per sector and is in addition to base fares and other taxes.

This move comes as several other carriers have also adjusted their fuel charges in response to the same global fuel shock.

Here is list of Indian airlines hiking ticket prices amid Iran-US-Israel conflict, as reported:

IndiGo

IndiGo, the country’s largest airline, has introduced a layered surcharge structure that varies sharply depending on distance and destination. Domestic travellers may see smaller increments, but international flyers are bearing the brunt. Routes to Europe now come with an additional Rs 10,000 per sector, while flights to Southeast Asia, Africa, and the Middle East are seeing hikes ranging from Rs 3,000 to Rs 5,000.

Domestic surcharge: Rs 275 – Rs 950 (based on distance)

International surcharge: Rs 900 – Rs 10,000

Europe routes: up to Rs 10,000 per sector

Middle East (GCC): Rs 3,000 – Rs 5,000

Southeast Asia & China: Rs 3,500 – Rs 5,000

Africa: Rs 5,000 per sector

Akasa Air

In the latest announcement, AirAsia confirmed that it will increase airfares by 31% to 40%, introduce a fuel surcharge of around 20%, and cut some flights, especially on less profitable routes, marking a major shift for a budget airline known for keeping fares low.

SpiceJet

SpiceJet Founder Ajay Singh said airlines will have “no choice” but to introduce fuel surcharges as costs continue to climb. He has urged the government to reduce taxes on jet fuel, warning that oil prices nearing $90 a barrel are “completely unsustainable.” Singh added that SpiceJet may even consider grounding aircraft if prices remain high, with airlines likely forced to reassess their expansion plans under such pressure.

Globally, airlines are navigating the same turbulence. That scale of disruption has a cascading effect, tightening capacity, altering routes, and increasing operational strain.