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A-I introduces fuel surcharges amid rising oil prices

Business Standard

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March 11, 2026

Air India on Tuesday announced a phased introduction of fuel surcharges on domestic and specific international tickets starting March 12, citing a sharp rise in aviation turbine fuel (ATF) prices following supply disruptions linked to fresh conflict in the Gulf region.

- DEEPAK PATEL

The airline said ATF, which accounts for nearly 40 per cent of operating costs, has seen a steep escalation in prices since early March due to supply interruptions. The cost pressure is further amplified in India by high excise duty and value-added tax on ATF in major metro cities such as Delhi and Mumbai, which increases the overall operating burden on airlines, it added.

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