Air India Group on Tuesday announced a gradual increase in fuel surcharge across its domestic and international network, citing the sharp rise in jet fuel prices due to the conflict in West Asia.
Aviation turbine fuel (ATF), which accounts for nearly 40% of the airline’s operating costs, has “seen a significant price increase due to supply disruptions” since early March, the group said in a statement.
Globally, jet fuel prices have almost doubled since the conflict began, rising from around $85-90 per barrel to between $150 and $200.
Airlines in other regions have moved to pass on the cost as well. Australian companies Qantas, Scandinavian SAS and Air New Zealand announced an increase in ticket prices or imposed temporary surcharges, while Hong Kong Airlines said it would raise fuel surcharges by up to 35.2%.
Air India said the cost pressure was exacerbated in India due to higher tariffs and VAT on ATF in major cities like Delhi and Mumbai, which amplified the cost impact and put significant pressure on the operating economics of the airlines.
The revised surcharge will be implemented in three phases across all flights, including those operated by Air India Express.
Under Phase 1, which applies to all new bookings from 0001 EST on March 12, an additional fee of $399 will apply to local and SAARC routes. West Asia and Middle East routes will attract an additional fee of $10. The surcharge on Southeast Asian routes will rise from $40 to $60, and on African routes from $60 to $90. A fuel surcharge will also be charged on flights from Singapore, where this does not currently apply.
The second phase, effective for bookings starting at 0001 EDT on March 18, will increase surcharges on long-haul routes – from $100 to $125 on European routes, and from $150 to $200 on North American and Australian routes.
The third phase is scheduled to include Far Eastern markets, including Hong Kong, Japan and South Korea, and details will be announced.
The airline said tickets issued before the phase dates in question will not attract the new surcharge unless passengers make changes to the flight route or date requiring the fare to be recalculated.
“Air India regrets the need to increase fuel surcharges in this way, but stresses that factors beyond its control necessitate this. In the absence of such fuel surcharges, it is likely that some flights will not be able to cover operating costs and will have to be cancelled,” the statement read.
Air India said it would review the additional charges periodically. Air India Express currently does not charge fuel surcharge on any of its flights.
