Air India has announced changes to its fuel surcharge structure for both domestic and international flights in response to the increasing global jet fuel prices. Effective from Wednesday, the airline will transition from a fixed surcharge to a distance-based system for domestic routes. The revised surcharge will vary from Rs 299 for flights up to 500 kms to Rs 899 for sectors exceeding 2,000 kms.
The decision to revise the surcharge comes after the government capped the rise in domestic Aviation Turbine Fuel (ATF) prices at 25%, enabling airlines to adopt a measured approach in passing on expenses to passengers. However, due to the absence of similar price controls on ATF for international routes, Air India will implement more significant adjustments.
Citing data from the International Air Transport Association (IATA), Air India highlighted a substantial surge in global jet fuel prices, reaching $195.19 per barrel by the end of March, nearly doubling from the previous month. This increase was primarily fueled by spikes in both crude oil prices and refining margins, creating a challenging fuel cost environment for airlines.
Following the restructuring, fuel surcharges for international flights will vary by region, starting at $24 for SAARC destinations (excluding Bangladesh) and escalating to $280 for North America and Australia. Flights bound for Europe will incur a surcharge of $205. Despite these changes, the surcharges do not entirely offset the sharp rise in fuel expenses, with Air India absorbing a significant portion of the additional costs.
Passengers holding tickets issued before the adjustment will not be subject to the new surcharge unless modifications to their travel plans necessitate fare recalculations. Previously, IndiGo also raised fuel charges on flight operations in response to the surge in aviation turbine fuel (ATF) prices.
