Daijiworld Media Network – New Delhi
New Delhi, Mar 11: Air India on Wednesday announced a phased increase in fuel surcharges on its domestic and international flights, citing a sharp rise in jet fuel prices triggered by the ongoing conflict between Iran and the United States in the Middle East.
The airline said the revised surcharge will be implemented in three phases across its network. It expressed regret over the decision but described the move as unavoidable due to factors beyond its control.
Air India warned that without the surcharge revision, some flights could become commercially unviable and may face cancellation.
“Absent such fuel surcharges, it is likely that some flights would be unable to cover operating costs and would have to be cancelled,” the airline said in a statement.
Under the revised structure, the fuel surcharge for flights to the Middle East will be set at $10. For flights to Africa, the surcharge will rise by $30 to $90, while flights to Southeast Asia will see an increase of $20 to $60.
The airline said the surcharges will be reviewed periodically and adjusted depending on developments in the global energy market.
However, Air India Express, the airline’s low-cost subsidiary, will not apply any fuel surcharge for now, offering some relief to passengers.
Air India said aviation turbine fuel (ATF), which accounts for nearly 40 per cent of an airline’s operating costs, has witnessed a sharp price increase since early March 2026 due to supply disruptions.
“In India, this pressure is amplified by high excise duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the cost impact and placing substantial strain on airline operating economics,” the airline said.
Jet fuel remains one of the most volatile cost components for airlines. Since India produces limited crude oil domestically, its aviation sector is highly exposed to global oil price fluctuations.
The conflict in the Middle East has also affected the global supply of natural gas. The Strait of Hormuz has remained a conflict zone for more than two weeks, leaving hundreds of cargo vessels stranded at major ports in the region.
India imports nearly half of its natural gas requirements from the international market, with about 20 per cent coming from Qatar.
Following missile attacks by Iran on gas fields in Qatar, QatarEnergy temporarily halted production, affecting gas supplies to several Asian markets.
To manage the emerging supply challenges, the Ministry of Petroleum and Natural Gas has issued guidelines prioritising the allocation and use of natural gas across four key sectors in the country.