Iran War Cited as Air India Raises Fuel Surcharge
Photo Credit: An Air India A320 Neo aircraft. Air India
Skift Take
Air India has a long history of financial troubles, and it is now taking an up front approach to discussing problems and its plans to tackle them.
Air India Group is to begin a phased expansion of a fuel surcharge across its domestic and international network.
The decision was made in response to the “steep rise” in jet fuel prices due to the ongoing Iran war, according to a statement released on Tuesday.
“Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40% of an airline’s operating costs, has seen significant price escalation due to supply interruptions.”
Air India Group, which will also apply the extended fuel surcharges across low-cost subsidiary Air India Express, has also been facing high excise duty and value-added tax on ATF in major metro cities such as Delhi and Mumbai. These have led to “substantial strain on airline operating economics.”
The company said these changes are crucial, because “absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled
