Flying Just Got Pricier: How the West Asia War is Burning a Hole in Your Wallet

Air India group has revised its fuel surcharge on both domestic and international routes following a sharp rise in global jet fuel prices.

The increase comes amid the West Asia war, which has triggered an energy crisis and pushed oil prices higher.

The changes will take effect from Wednesday, April 8, 2026, for most routes.

For Europe, North America, and Australia, the revised surcharge will apply from April 10, 2026.

Increase in ticket fares comes as Air India Chief Executive Officer (CEO) and Managing Director (MD) Campbell Wilson has resigned from his position.

What Is Air India’s New Distance-Based Domestic Fuel Surcharge?

Air India has introduced a distance-based domestic fuel surcharge structure, replacing the earlier flat charge.

Short-haul flights of up to 500 km will attract an additional Rs 299, while routes between 501 km and 1,000 km will have a surcharge of Rs 399.

Flights covering 1,001 km to 1,500 km will see a surcharge of Rs 549. For longer domestic routes between 1,501 km and 2,000 km, passengers will pay Rs 749.

Flights above 2,000 km will incur the highest domestic surcharge of Rs 899.

The airline stated that the move follows a calibrated approach by the Ministry of Petroleum & Natural Gas and the Ministry of Civil Aviation, which capped the domestic Aviation Turbine Fuel price hike at 25 per cent.

The revised grid will also apply to Air India Express flights.

For international routes, Air India has implemented a sharper revision, noting that there is no cap on international ATF prices.

The airline clarified that the surcharge does not fully cover the rise in jet fuel costs and that it continues to absorb part of the increase.

Data from the International Air Transport Association shows that the global average jet fuel price rose to $195.19 per barrel for the week ending March 27, up from $99.40 per barrel at the end of February.

This represents a rise of nearly 100 per cent in a month.

Refinery margins, known as the crack spread, jumped from $27.83 to $81.44 per barrel in three weeks, making fuel one of the largest cost pressures for airlines worldwide.