AIR INDIA RAISES FUEL SURCHARGE AMID JET FUEL SPIKE
New Delhi, Apr 08, 2026 : Air India has announced revisions to its fuel surcharge structure across domestic and international routes, citing a sharp rise in global jet fuel prices.
In a statement, the airline said the move comes as carriers worldwide grapple with one of the most challenging fuel cost environments in recent years.
According to data by the International Air Transport Association (IATA), the global average jet fuel price rose to USD 195.19 per barrel for the week ending March 27, 2026, nearly doubling from USD 99.40 at the end of February.
The airline noted that the increase has been driven not only by higher crude oil prices but also by a sharp rise in refining margins, commonly referred to as the “crack spread,” which has nearly tripled within three weeks.
For domestic routes, Air India said it will shift from a flat surcharge structure to a distance-based system starting April 8. The surcharge will range from Rs.299 per passenger for flights up to 500 km to Rs.899 for distances above 2,000 km. The move follows decisions by the Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation to cap domestic Aviation Turbine Fuel (ATF) price hikes at 25 per cent.
For international routes, the airline indicated more substantial revisions due to the absence of similar price controls. It added that even with the revised surcharge, the additional charges do not fully offset the steep rise in fuel costs, and the airline continues to absorb a significant portion of the burden.
Meanwhile, Air India Chief Executive Officer Campbell Wilson has informed employees of his decision to step down after leading the airline’s transformation over the past four years.
In an internal communication, Wilson said the timing aligns with the airline’s next phase of growth, particularly with bulk aircraft deliveries expected to begin from 2027. He added that he will continue in his role until a smooth transition is completed.
Reflecting on the airline’s journey since its return to the Tata Sons group, Wilson said the period has seen major changes, including the merger of four airlines, modernisation of systems, and the addition of over 100 aircraft to the fleet.