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Air India Hikes Fuel Surcharge Amid Global Oil Price Shock

Air India has announced a revision in its fuel surcharge structure for both domestic and international routes, effective immediately. The domestic surcharge shifts from a flat rate to a distance-based model, ranging from Rs 299 to Rs 899. For international flights, the surcharge varies significantly by region, with the highest being $280 for North America and Australia. The airline cites a near-doubling of global jet fuel prices as the primary driver, stating the current environment is one of the most challenging in recent years.

Key Points: Air India Raises Fuel Surcharge on Domestic & International Flights

  • New distance-based domestic surcharge
  • International surcharge varies by region
  • Global jet fuel prices nearly doubled
  • Surcharges don't fully cover cost rise
  • Tickets issued before change unaffected
2 min read

Global oil shock: Air India hikes fuel surcharge on domestic, international routes

Air India hikes fuel surcharge on domestic and international routes due to soaring global jet fuel prices. New distance-based structure implemented.

"one of the most challenging fuel cost environments for airlines in recent years - Air India citing IATA data"

New Delhi, April 7

Air India on Tuesday announced a revision in fuel surcharge across domestic and international routes amid a rise in global jet fuel prices.

For domestic routes, the airline said it will shift from a flat surcharge to a distance-based structure, effective from Wednesday.

The revised surcharge will range from Rs 299 for flights up to 500 kms to Rs 899 for sectors above 2,000 kms.

The move follows the government's decision to cap the increase in domestic Aviation Turbine Fuel (ATF) prices at 25 per cent, which allows airlines to adopt a calibrated approach in passing on costs to passengers.

However, the airline will implement steeper revisions due to the absence of similar price controls on ATF for international routes.

Citing data from the International Air Transport Association (IATA), Air India said global jet fuel prices surged to $195.19 per barrel for the week ending March 27, nearly doubling from $99.40 at the end of February.

The airline said the sharp rise was driven by increases in both crude oil prices and refining margins, with the 'crack spread' jumping significantly in recent weeks, leading to one of the most challenging fuel cost environments for airlines in recent years.

After the revised structure, fuel surcharge on international routes will vary by region, starting from $24 for SAARC destinations (excluding Bangladesh) and going up to $280 for North America and Australia. Europe-bound flights will attract a surcharge of $205.

The airline said that even after the revision, surcharges do not fully compensate for the steep rise in fuel costs, and it continues to absorb a significant portion of the increase.

Tickets issued before the revised timings will not attract the new surcharge unless passengers make changes to their travel plans requiring fare recalculation.

Earlier, IndiGo increased fuel charges on flight operations due to the surge in aviation turbine fuel (ATF) prices.

- IANS

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Reader Comments

P
Priya S
While I understand global factors are at play, the timing feels terrible. Many of us have family weddings and summer travel planned. The distance-based structure for domestic is at least more logical than a flat fee. Hope other airlines don't follow with even bigger hikes. 🙏
A
Aman W
$280 extra for US/Canada flights! That's almost 20,000 rupees. This makes visiting family abroad so much more expensive. The article says they're still absorbing some cost, but it's a massive burden on the passenger.
S
Sarah B
A respectful criticism: Air India, now under the Tata group, was supposed to improve efficiency. While fuel is an external cost, can we get more transparency on what they're doing to offset this internally? Better fleet fuel efficiency? Optimised routes? Just passing costs on feels like the old Air India.
V
Vikram M
The geopolitical situation is really hurting consumers worldwide. We're far from the conflict but paying the price. Maybe time to explore trains for shorter routes again. At least IRCTC fares are stable!
K
Karthik V
Good that tickets already booked are safe unless changes are made. That's a relief. But looking forward, air travel is becoming a luxury. The government's 25% cap on domestic ATF increase seems like a half-measure when prices have doubled globally.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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