The Air India group announced on Tuesday that it would introduce a fuel surcharge ranging from ₹299 to ₹899 for domestic flights, and between USD 24 and USD 280 for international routes (with certain routes excluded).
According to a statement from the airline, the revised surcharge will come into effect from April 8 and will also apply to flights operated by its low-cost subsidiary, Air India Express. Adjustments to fuel surcharges for flights to and from Bangladesh and Far East destinations, such as Japan, Hong Kong, and South Korea, will be communicated later, subject to necessary regulatory approvals.
The airline explained that after the government capped the increase in domestic Aviation Turbine Fuel (ATF) prices at 25 per cent, it adopted a more calibrated strategy by shifting from a flat surcharge to a distance-based structure for domestic travel.
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However, due to the lack of any relief in international ATF prices, the Air India group will implement steeper revisions in fuel surcharges for international flights. Meanwhile, domestic carrier IndiGo has already announced a similar increase in its fuel surcharge.
Referring to the latest data from the International Air Transport Association (IATA), the airline noted that the global average price of jet fuel climbed to USD 195.19 per barrel for the week ending March 27, nearly doubling from USD 99.40 at the end of February.
Fuel costs make up around 40–45 per cent of an airline’s total expenses. ATF, which is derived from crude oil, has seen sharp increases not only in crude prices but also in refinery margins, known as the ‘crack spread’. This margin surged from USD 27.83 per barrel for the week ending February 27 to USD 81.44 by March 27—almost tripling within three weeks.
The airline stated that this rapid rise has intensified the impact of increasing crude oil prices, creating one of the most difficult fuel cost environments for airlines worldwide in recent years.
Despite the surcharge revisions, the additional charges on international routes still do not fully offset the sharp rise in jet fuel costs. Air India added that it continues to absorb a substantial share of these increased expenses.
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