-Friday 🌎 World March 12, 2026
→ This decision is not merely an airline’s compulsion — it is the direct fallout of escalating geopolitical instability worldwide. The ongoing Iran–US–Israel conflict (widely referred to as the Iran War) has severely disrupted oil and gas supply chains in the Middle East. Critical routes like the Strait of Hormuz have been affected, pushing crude oil prices through the roof and directly inflating ATF costs. According to Air India, ATF prices have seen a steep rise since early March 2026, accounting for nearly 40% of total operating expenses. High excise duty and VAT on ATF in major Indian cities like Delhi and Mumbai have further aggravated the burden.
Detailed Breakdown of Fuel Surcharge Increase: How Much Will It Cost You in Three Phases?
Phase 1 (Effective March 12, 2026 – 0001 IST for new bookings):
Domestic flights (within India) and SAARC countries: Flat surcharge of ₹399 (previously not applicable).
West Asia / Middle East (UAE, Saudi Arabia, Iran, etc.): Increased to $10 (approx. ₹830–850).
Southeast Asia: Raised from $40 to $60.
Africa: Raised from $60 to $90.
Phase 2 (Effective March 18, 2026 – 0001 IST for new bookings):
→ Europe: Increased from $100 to $125.
→ North America: Increased from $150 to $200.
→ Australia: Increased from $150 to $200.
Phase 3 (Not yet announced – expected soon for Far East markets such as Hong Kong, Japan, South Korea):
This phase will follow shortly, with significant further increases anticipated.
These surcharges are applied per ticket and are in addition to the base fare. For example, on a ₹10,000 domestic ticket, you will now pay an extra ₹399. On long-haul international flights, the additional cost could reach up to $200 (approximately ₹16,500–17,000).
Why Are ATF Prices Soaring? The Real Cost of War → India imports nearly 50% of its oil and gas requirements from Gulf countries. The Iran–US–Israel war has not only disrupted production but also forced longer shipping routes, airspace closures, and higher transportation costs. The Strait of Hormuz, through which around 20% of global oil and a large volume of LNG passes, has been significantly impacted.
In India, ATF prices in Delhi reached ₹96,638 per kilolitre in March 2026, up from ₹91,393 in February and ₹92,323 in January. This sharp escalation is proving fatal for airlines. Air India has clearly stated that without increasing the fuel surcharge, flight cancellations would become inevitable — a scenario far worse for passengers. → Impact Beyond Air Travel: Ripple Effect on the Entire Economy
This increase is not limited to flyers alone. Hotels, restaurants, and industries relying on commercial LPG have already seen price hikes (recent increase of ₹115). Tourism, business travel, family visits — everything will become costlier. Summer vacations, festival travel, and peak-season bookings will feel the pinch the most.
If the situation in the Middle East does not stabilize quickly, further hikes are likely in the coming months. Other carriers such as IndiGo, SpiceJet, and others may follow suit, as fuel cost is a universal challenge for the entire aviation sector.
Advice for Travellers: What Should You Do?
Book early: If you have travel plans, complete your booking before March 18 to avoid Phase 2 surcharges.
Check alternative airlines: Some low-cost carriers may still have lower or delayed surcharges.
Choose flexible dates: Off-peak travel can help save money.
Verify surcharge: Always check the latest fare on the Air India website or app before finalizing your booking.
This is not just Air India’s crisis — it is the entire airline industry’s struggle. The price of war is ultimately paid by the common man — whether it’s gas in the kitchen or fuel in the sky. We hope global peace returns soon; otherwise, air travel risks becoming an exclusive luxury for the wealthy.
Jai Hind! ✈️ The fight continues, but wallets are emptying fast.
Sajjadali Nayani ✍
Friday 🌎 World March 12, 2026
