Air India cuts fuel surcharge on select international routes as global jet fuel prices ease: Sources
New Delhi, July 3
Air India has reduced fuel surcharges on select international routes, becoming the first Indian airline to lower the additional charge amid moderation in global jet fuel prices, sources said.
The airline has reduced the fuel surcharge per passenger to USD 125 for flights to Europe from USD 205 in April. For North America and Australia, the surcharge has been cut to USD 200 from USD 280.
No other Indian airline has announced a similar reduction so far.
The move comes after global jet fuel prices witnessed a sharp surge earlier this year, significantly increasing operating costs for airlines.
The global average jet fuel price rose to USD 195.19 per barrel for the week ending March 27, 2026, almost doubling from USD 99.40 per barrel at the end of February, registering an increase of nearly 100 per cent.
Aviation Turbine Fuel (ATF), which is produced by refining crude oil, also witnessed a sharp increase in refinery margins, commonly known as the crack spread.
The crack spread nearly tripled within three weeks, rising from USD 27.83 per barrel for the week ending February 27 to USD 81.44 per barrel for the week ending March 27.
The simultaneous rise in crude oil prices and refinery margins created one of the most challenging fuel cost environments for airlines globally in recent years.
With international jet fuel prices moderating from their March peak, Air India has passed on part of the benefit to passengers travelling on long-haul international routes.
The reduction is expected to make travel to Europe, North America and Australia slightly more affordable for passengers.
Air India's decision will also be closely watched by the aviation industry, as no other Indian carrier has yet announced similar reductions in fuel surcharge on international routes.
Air India's reduction is expected to make long haul travel slightly more affordable on these routes even as the broader aviation sector grapples with fluctuating energy prices.
— ANI
Reader Comments
Good move by Air India, but I'm skeptical. The article says no other Indian airline has cut surcharges yet. That makes me wonder if Air India is just trying to attract more passengers while others are still making profits from high fuel costs. Why not reduce the base fare instead of playing with surcharges? 🤔
As someone who flies to the US frequently for work, this is welcome news. But let's be real - when jet fuel prices were skyrocketing, airlines didn't hesitate to pass the entire burden to passengers. Now that prices are falling, they're only partially reducing surcharges. Seems like a selective benefit, especially when domestic routes are still expensive. Still, every bit helps.
This is great! My parents in Bangalore were planning to visit me in Melbourne, and the USD 280 surcharge was too much. Now USD 200 is more manageable. Also, Air India's service on the Bangalore-Melbourne route has improved a lot recently. Keep it up! 🇦🇺
While this reduction is helpful, the article highlights that fuel surcharges are still high. USD 200 to North America is still a lot. Also, why only international routes? Domestic ATF prices have also come down but no relief for us. Airlines in India need to be more transparent about how surcharges are calculated. Just my two paise. 😅
A small step in the right direction. But I wish the government would also reduce ATF taxes (especially state VAT) to make flying truly affordable. Even with this cut, a ticket
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