West Asia war: Air India introduces fuel surcharges amid rising oil prices

Air India to impose fuel surcharges on domestic and international flights in phases from March 12 as aviation turbine fuel prices surge amid supply disruptions

Air India on Tuesday announced a phased introduction of fuel surcharges on domestic and specific international tickets starting March 12, citing a sharp rise in aviation turbine fuel (ATF) prices  following supply disruptions linked to fresh conflict in the Gulf region. The airline said ATF, which accounts for nearly 40 per cent of operating costs, has seen a steep escalation in prices since early March due to supply interruptions. The cost pressure is further amplified in India by high excise duty and value-added tax on ATF in major metro cities such as Delhi and Mumbai, which increases the overall operating burden on airlines, it added. 

 

Under the first phase, applicable to all new bookings made from March 12 onwards, the airline will introduce a fuel surcharge of ₹399 on domestic flights as well as routes to neighbouring South Asian countries that are part of the South Asian Association for Regional Cooperation (SAARC), such as Nepal, Sri Lanka and Bangladesh. These routes did not previously attract any fuel surcharge. 

The airline will also introduce a new surcharge of $10 on flights to West Asia or the Middle East, where no fuel surcharge was applied earlier. 

On Southeast Asia routes, the surcharge will increase to $60 from $40 currently, while flights to Africa will see the surcharge rise to $90 from $60. 

In the second phase, which will apply to bookings made from March 18 onwards, the airline will increase fuel surcharges on long-haul routes. The surcharge on flights to Europe will rise to $125 from $100, while the surcharge on flights to North America and Australia will increase to $200 from $150. 

A third phase covering Far East markets such as Hong Kong, Japan and South Korea will be announced later, the airline said.

 

The airline clarified that tickets issued before the respective implementation dates will not attract the revised surcharge unless passengers make changes to their travel date or itinerary that require a fare recalculation. The surcharge will apply to all flights operated by the Air India group, including those run by Air India Express.

 

"Air India regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control. Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled. Air India will review its surcharges periodically and make appropriate adjustments as the situation requires," the airline said.