In a move that is going to burn a hole in passengers’ pockets, Air India and Air India Express have increased fuel surcharges on domestic and select international flights, citing a continued rise in Aviation Turbine Fuel (ATF) prices and the resulting increase in operating costs.
The move comes after IndiGo also revised its fuel surcharge amid heightened pressure on airline fuel expenses.
For domestic flights, passengers booking tickets on Air India and Air India Express will now have to pay a fuel surcharge of Rs 850 for journeys covering 1,001-1,500 km, while flights covering more than 1,500 km will attract a flat surcharge of Rs 1,200.
The airlines have also revised fuel surcharges on several international routes. For flights to North America, the surcharge has been increased to USD 215, while passengers travelling to Australia will have to pay USD 210. Flights to Europe, including the UK, will attract a revised surcharge of USD 135.
The latest changes come against the backdrop of a sharp increase and volatility in global energy prices, which have raised the cost of aviation fuel for carriers operating in India.
ATF is one of the largest components of an airline’s operating expenditure and can account for around 40 per cent of the total operational cost of a flight.
Air India and Air India Express, in a joint statement, said they had revised the fuel surcharge “across domestic and select international routes in response to the continued increase in Aviation Turbine Fuel (ATF) prices”.
The airlines said ATF prices have experienced “significant volatility in recent months”, driven largely by geopolitical developments and sustained pressure on global energy markets.
According to the group, the latest increase in fuel prices has further raised operating costs, with fuel continuing to account for a substantial share of overall airline expenditure.
The airlines said the revised surcharge was a calibrated measure intended to partially offset the higher fuel costs while allowing them to continue providing reliable services across their networks.
The revised fuel surcharge will apply to new bookings made from 0000 hours IST on October 9 for Air India Express. For Air India, the revised surcharge will come into effect for new bookings made from 1100 hours IST on October 9.
The increase means passengers booking flights from the two carriers will see higher fares as the additional fuel component is incorporated into ticket prices.
With ATF prices continuing to remain sensitive to global energy market movements and geopolitical developments, airlines are likely to closely monitor fuel costs and make further adjustments if sustained increases add to their operating burden.