Air India Tickets to Get Costlier as Airline Revises Fuel Surcharge

Air India passengers will soon have to pay more for their tickets, with the airline revising its fuel surcharge structure from April 8. The Tata Group-owned carrier has moved away from its earlier flat-rate model for domestic routes and introduced a distance-based surcharge system. The decision follows a sharp global rise in aviation turbine fuel (ATF) prices, even though the Indian government recently capped ATF rates at a maximum of 25 per cent.Under the new slab, passengers travelling up to 500 km will pay an additional ₹299, while those flying between 501–1,000 km will pay ₹399. For distances of 1,001–1,500 km, the surcharge increases to ₹549, and for 1,501–2,000 km, it will be ₹749. Journeys exceeding 2,000 km will attract a surcharge of ₹899. Air India has also increased surcharges on international routes, which will push up prices across several key sectors.This revision comes on the heels of IndiGo’s recent decision to hike its fuel charges from April 2 after the surge in ATF prices. According to industry data, global jet fuel averaged USD 195.19 per barrel for the week ending March 27, 2026—nearly double the USD 99.40 per barrel recorded in late February. This steep jump is attributed to higher crude oil prices and inflated refinery margins, also known as crack spreads.In a related development, Air India CEO Campbell Wilson has resigned, according to PTI sources. Wilson, who took charge in July 2022, had been leading Air India’s major transformation programme under the Tata Group.

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