Surge in global ATF prices: Now Air India announces fuel surcharge hike for domestic & international flights

Mumbai: With the ongoing West Asia crisis leading to surge in global Aviation Turbine Fuel (ATF) prices, national carrier Air India revised its fuel surcharge on both domestic and international routes.

The changes will take effect from April 8 for most routes. For Europe, North America and Australia the revised surcharge will be effective April 10.

The revised fare structure will apply to both Air India and its subsidiary Air India Express.

The surcharge will range from Rs 299 to Rs 899 for domestic flights and $24 to $280 for international routes.

For the domestic sector, Air India said that following the Ministry of Petroleum & Natural Gas' and Ministry of Civil Aviation's decision to cap the domestic ATF price hike at 25%, the airline is reflecting this calibrated approach, transitioning from a flat domestic fuel surcharge of Rs 299 for flights up to 500 km, Rs 399 for 501–1,000 km, Rs 549 for 1,001–1,500 km, Rs 749 for 1,501–2,000 km, and Rs 899 for distances beyond 2,000 km.

According to the latest data published by the International Air Transport Association (IATA), the global average jet fuel price rose to USD 195.19 per barrel for the week ending 27 March 2026, up from USD 99.40 at the end of February, recording a surge of close to 100%.

ATF, produced by refining crude oil, has seen simultaneous increases in both its crude oil component as well as the refinery margin, known as ‘crack spread’, with the latter having nearly tripled within three weeks. It increased from USD 27.83 per barrel for the week ending 27 February to USD 81.44 for the week ending 27 March.

This steep rise compounds the impact of rising crude oil prices, creating one of the most challenging fuel cost environments that airlines globally have faced in recent years, it said.