The Crossbill News Desk
Airfares on several domestic and international routes are set to rise after the Air India group revised its fuel surcharge structure following a sharp escalation in aviation turbine fuel (ATF) prices triggered by the ongoing West Asia conflict.
The revised charges come into effect days after jet fuel prices witnessed an unprecedented surge in global markets, prompting airlines to recalibrate operating costs.
On Tuesday, the Air India group announced an increase in fuel surcharges for domestic flights covering distances beyond 1,000 km, while international routes—particularly long-haul sectors—will see a steeper rise. Earlier, India’s largest airline IndiGo had implemented similar fuel surcharge revisions from April 1, signalling an industry-wide response to mounting fuel expenses.
The surcharge revision aligns with the government’s decision, implemented through public sector oil marketing companies (OMCs), to pass on only a portion of the increase in ATF prices to scheduled domestic airlines while allowing the full market-linked price hike to apply to international operations. The policy aims to cushion domestic air travel from sudden fare spikes even as global fuel costs soar.
Amid rapidly rising international jet fuel prices linked to geopolitical tensions in West Asia, the Air India group—which operates full-service carrier Air India and low-cost airline Air India Express—had earlier imposed a flat fuel surcharge of Rs 399 on all domestic flights from March 12. Under the new structure, effective from 09:01 am on Wednesday (April 8), the flat levy has been replaced with a distance-based tiered surcharge ranging between Rs 299 and Rs 899.
For international flights, the surcharge has been significantly increased. Most overseas routes beyond South Asia will now attract surcharges ranging between $50 and $280, compared with the earlier band of $10–200.
Flights to Europe, the UK, North America and Australia will implement the revised surcharge from April 10, while other international routes will adopt the new rates from Wednesday morning.
The Ministry of Petroleum and Natural Gas (MoPNG) said that while international jet fuel prices suggested that domestic ATF rates should have more than doubled from April 1, authorities opted for only a “partial and staggered” increase for scheduled domestic carriers.
Airlines operating international services, however, continue to pay the full market price, a rule that also applies to non-scheduled operators such as private charter companies.
Data shows that ATF prices in Delhi had surged nearly 115% month-on-month to a record Rs 2.07 lakh per kilolitre before being revised to Rs 1.05 lakh per kilolitre for scheduled domestic airlines—an increase of 8.6% over March levels. For international operations, the ATF price rose 107% to $1,690.81 per kilolitre.
According to the International Air Transport Association (IATA), global jet fuel prices climbed to $195.19 per barrel for the week ending March 27 from $99.40 at the end of February, while the crack spread widened sharply to $81.44 per barrel from $27.83 a month earlier.
“This steep rise compounds the impact of rising crude oil prices, creating one of the most challenging fuel cost environments that airlines globally have faced in recent years,” Air India said regarding the steep hikes in fuel surcharge on international flights.
Industry observers note that jet fuel already accounted for more than 40% of operating costs for Indian airlines even before the conflict intensified. With fuel prices climbing further, airlines fear that higher fares could weaken passenger demand and potentially force reductions in flight frequencies on less profitable routes.
Government ministries, including MoPNG and the Ministry of Civil Aviation, along with OMCs, continue discussions on pricing mechanisms to manage the impact of volatile global energy markets.
“The fuel surcharges on international routes do not compensate for the exponential increase in jet fuel prices for international flights. Air India continues to absorb a significant portion of this increased cost…Air India will review its surcharges periodically and make appropriate adjustments as the situation requires,” the airline said.
The revised charges come into effect days after jet fuel prices witnessed an unprecedented surge in global markets, prompting airlines to recalibrate operating costs.
On Tuesday, the Air India group announced an increase in fuel surcharges for domestic flights covering distances beyond 1,000 km, while international routes—particularly long-haul sectors—will see a steeper rise. Earlier, India’s largest airline IndiGo had implemented similar fuel surcharge revisions from April 1, signalling an industry-wide response to mounting fuel expenses.
The surcharge revision aligns with the government’s decision, implemented through public sector oil marketing companies (OMCs), to pass on only a portion of the increase in ATF prices to scheduled domestic airlines while allowing the full market-linked price hike to apply to international operations. The policy aims to cushion domestic air travel from sudden fare spikes even as global fuel costs soar.
Amid rapidly rising international jet fuel prices linked to geopolitical tensions in West Asia, the Air India group—which operates full-service carrier Air India and low-cost airline Air India Express—had earlier imposed a flat fuel surcharge of Rs 399 on all domestic flights from March 12. Under the new structure, effective from 09:01 am on Wednesday (April 8), the flat levy has been replaced with a distance-based tiered surcharge ranging between Rs 299 and Rs 899.
For international flights, the surcharge has been significantly increased. Most overseas routes beyond South Asia will now attract surcharges ranging between $50 and $280, compared with the earlier band of $10–200.
Flights to Europe, the UK, North America and Australia will implement the revised surcharge from April 10, while other international routes will adopt the new rates from Wednesday morning.
The Ministry of Petroleum and Natural Gas (MoPNG) said that while international jet fuel prices suggested that domestic ATF rates should have more than doubled from April 1, authorities opted for only a “partial and staggered” increase for scheduled domestic carriers.
Airlines operating international services, however, continue to pay the full market price, a rule that also applies to non-scheduled operators such as private charter companies.
Data shows that ATF prices in Delhi had surged nearly 115% month-on-month to a record Rs 2.07 lakh per kilolitre before being revised to Rs 1.05 lakh per kilolitre for scheduled domestic airlines—an increase of 8.6% over March levels. For international operations, the ATF price rose 107% to $1,690.81 per kilolitre.
According to the International Air Transport Association (IATA), global jet fuel prices climbed to $195.19 per barrel for the week ending March 27 from $99.40 at the end of February, while the crack spread widened sharply to $81.44 per barrel from $27.83 a month earlier.
“This steep rise compounds the impact of rising crude oil prices, creating one of the most challenging fuel cost environments that airlines globally have faced in recent years,” Air India said regarding the steep hikes in fuel surcharge on international flights.
Industry observers note that jet fuel already accounted for more than 40% of operating costs for Indian airlines even before the conflict intensified. With fuel prices climbing further, airlines fear that higher fares could weaken passenger demand and potentially force reductions in flight frequencies on less profitable routes.
Government ministries, including MoPNG and the Ministry of Civil Aviation, along with OMCs, continue discussions on pricing mechanisms to manage the impact of volatile global energy markets.
“The fuel surcharges on international routes do not compensate for the exponential increase in jet fuel prices for international flights. Air India continues to absorb a significant portion of this increased cost…Air India will review its surcharges periodically and make appropriate adjustments as the situation requires,” the airline said.
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