Air India, Air India Express and Akasa Air have announced higher fuel surcharges on domestic and international flights, increasing the cost of air travel for passengers amid a sharp rise in global crude oil prices and aviation fuel costs.

The latest surcharge revisions come at a time when Brent crude oil prices have surged nearly 60% over the past year. Brent was trading around $104 per barrel on October 8, 2026, compared with roughly $65–$67 per barrel during the same period last year.

The rise in crude prices has been driven by escalating tensions and disruptions in the Middle East, including the ongoing US-Iran conflict and risks to oil shipments through the Strait of Hormuz. Recent attacks on shipping in the region have raised concerns about further disruptions to global oil supplies.

Air India and Air India Express Raise Domestic Fuel Surcharge

Air India and Air India Express have increased their domestic fuel surcharge based on flight distance. The revised surcharge will apply to new bookings made from October 9.

Under the revised structure, passengers travelling on domestic routes will pay a surcharge ranging from ₹400 to ₹1,200 one-way.

For flights covering up to 500 km, the domestic fuel surcharge has been set at ₹400. Flights between 501 km and 1,000 km will attract a surcharge of ₹600, while journeys between 1,001 km and 1,500 km will carry a surcharge of ₹850.

For flights covering 1,501 km to 2,000 km, the surcharge will be ₹1,200. The same ₹1,200 surcharge will apply to domestic flights above 2,000 km.

The airlines have cited higher aviation fuel costs as the key reason behind the increase, adding pressure to the overall cost of air travel.

Akasa Air Introduces Domestic Fuel Surcharge

Akasa Air has also introduced a fuel surcharge on domestic routes for the first time. The airline's revised domestic surcharge will vary according to the distance travelled.

For flights covering 0–500 km, passengers will pay a surcharge of ₹375. Routes between 501 km and 1,000 km will attract a ₹600 surcharge, while flights between 1,001 km and 1,500 km will carry a ₹900 surcharge.

For flights covering 1,501 km and above, Akasa Air will charge a domestic fuel surcharge of ₹1,150.

Akasa Air Revises International Fuel Surcharge

Along with introducing a domestic fuel surcharge, Akasa Air has revised its fuel surcharge on international routes.

The airline has increased the international fuel surcharge to ₹2,500 one-way on selected routes between India and countries including Kuwait, Qatar, Saudi Arabia, the UAE, Thailand and Vietnam.

The revised international surcharge means passengers travelling on these routes will face an additional ₹2,500 charge on a one-way journey, apart from the base fare and other applicable taxes or fees.

Why Rising Crude Oil Prices Matter for India

The increase in airline fuel surcharges comes against the backdrop of a broader rise in global energy costs.

India is highly dependent on imported crude oil. Government data shows that crude oil import dependency was around 88.2% in 2024–25, meaning the country relies heavily on overseas supplies to meet its crude oil requirements. India imported around 242.4 million tonnes of crude oil during 2024–25.

Crude oil is the key feedstock for India's refining industry, which converts imported crude into petrol, diesel, aviation turbine fuel and other petroleum products. Higher international crude prices therefore increase costs across the energy and transportation ecosystem.

The impact is not limited to airlines. Higher crude and petroleum-product prices can also increase transportation, logistics, manufacturing and other operating costs for businesses that depend on fuel and petroleum-based inputs.

India's crude oil import bill has already come under pressure from the rise in international oil prices. Data reported in July showed that India's crude oil import bill increased by more than 60% year-on-year in the first quarter of FY2026-27, even as import volumes declined slightly.

Higher Fuel Costs Put Pressure on Airfares

Fuel is one of the largest operating expenses for airlines, making aviation particularly sensitive to changes in crude oil and jet fuel prices.

As Brent crude prices remain elevated amid geopolitical tensions, airlines may continue to face higher fuel and operating costs. The latest moves by Air India, Air India Express and Akasa Air indicate that part of this additional cost is being passed on to passengers through fuel surcharges.

For travellers, the higher surcharges mean that the final ticket price could increase even when the advertised base fare remains unchanged.

With crude oil prices rising sharply over the past year and geopolitical risks remaining elevated, passengers and businesses may continue to face pressure from higher energy and transportation costs in the coming months.