US-Iran warfare: Air India on Tuesday introduced that it’ll impose a gas surcharge on each home and worldwide routes. The airline cited a steep rise in jet gas costs, pushed by the geopolitical scenario within the Gulf area.
In a press launch, Air India stated that Aviation Turbine Gas (ATF), which accounts for almost 40% of an airline’s working prices, has seen important value escalation since early March 2026 as a consequence of provide disruptions.
The airline added: “In India, this strain is amplified by excessive Excise Responsibility and VAT on ATF in main metro cities corresponding to Delhi and Mumbai, magnifying the fee impression and putting substantial pressure on airline working economics.”
Air India stated that the gas surcharges will likely be applied in three phases. It would apply to all flights, together with these operated by its low-cost subsidiary, Air India Categorical.
Which routes will likely be impacted throughout Section 1?
Within the first part, Air India will impose a gas surcharge on all new bookings produced from 12 March 2026 for flights working to and from the next areas. This is the total checklist:
— Home India: Flights within the home routes will appeal to a gas surcharge of ₹399, which was not utilized earlier.
— SAARC: Flights to and from SAARC nations may even witness a gas surcharge of ₹399, which was not beforehand relevant.
— West Asia / Center East: Flights to locations in West Asia/ Center East, such because the UAE, will appeal to a $10 gas surcharge, up from no surcharge earlier.
— Southeast Asia: For these routes, the surcharge will rise from $40 to $60.
— Africa: Flights to locations in Africa will witness the surcharge rise from $60 to $90 as properly.
Moreover, the airline added that flights to and from Singapore at present don’t incur a gas surcharge, however it is going to apply from part 1.
Which routes will likely be impacted throughout Section 2?
Within the second part, Air India will impose a gas surcharge on all new bookings produced from 18 March 2026 for flights working to and from the next areas. This is the total checklist:
— Europe: Gas surcharges on flights to European nations will enhance from $100 to $125.
— North America: For routes to North America, the surcharge will enhance from $150 to $200.
— Australia: Flights to Australia will see a rise in surcharge from the present charge of $150 to $200.
Third part adjustments to be introduced quickly
A 3rd part, protecting Far East markets together with Hong Kong, Japan and South Korea, will likely be introduced in the end, the discharge stated.
Air India additionally clarified that tickets issued earlier than the surcharge implementation is not going to be topic to the brand new charges except passengers request date or itinerary adjustments that require a fare recalculation.
“Air India regrets the necessity to enhance gas surcharges on this method however emphasises that it’s necessitated by elements outdoors its management. Absent such gas surcharges, it’s probably that some flights can be unable to cowl working price and must be cancelled,” the airline stated within the assertion.
The airline stated it is going to evaluation its surcharges periodically and make applicable changes as required, including that Air India Categorical at present doesn’t levy gas surcharges on any of its flights.