NEW DELHI, March 11 — Air India is raising fuel surcharge on its domestic and international routes by up to US$50 (about RM200) after oil prices surged due to the ongoing war in West Asia.
Ticket prices on European, North American and Australian routes will be costlier, US$25-50 from March 18, while a surcharge will be raised by US$10-30 on West Asian, South Asian and African bookings starting tomorrow, according to an airline statement yesterday.
It will also introduce a surcharge of 399 rupees (about RM17) on domestic and South Asian flights from tomorrow.
The decision is "necessitated by the steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region", Air India said.
"Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40 per cent of an airline's operating costs, has seen significant price escalation due to supply interruptions.
"In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying the impact and placing substantial strain on airline operating economics," it added.
The phased increase in fuel surcharge on Air India's Hong Kong, Japan, and South Korea routes will be "announced in due course".
The US-Israel war on Iran has created travel chaos and made airlines vulnerable to soaring fuel costs amid crude oil supply disruptions.
Benchmark oil prices have retreated since climbing near US$120 a barrel on Monday.
Iran has threatened to hit any tanker linked to its adversaries passing through the Strait of Hormuz, a key sea passage for energy trade on Iran's southern border.
Airlines have also experienced disruptions to their flight schedules due to the war, amid Iranian retaliatory strikes on American military assets in the Gulf region, home to major travel hubs such as Dubai, Doha and Abu Dhabi.
