THE JHARKHAND STORY DESK
New Delhi, April 7: The Air India group has announced a fuel surcharge hike on domestic and international flights, effective April 8, citing a sharp rise in global jet fuel prices that has significantly increased operating costs.
The revised surcharge will apply to flights operated by Air India and its low-cost subsidiary Air India Express.
Revised Fuel Surcharge Slabs
According to the airline, the surcharge will range from Rs 299 to Rs 899 on domestic routes, while for international flights, it will vary between USD 24 and USD 280, depending on distance. Some sectors, however, have been excluded.
Revisions to routes to Bangladesh and Far East destinations, including Japan, Hong Kong, and South Korea, will be announced later, subject to regulatory approvals.
Shift to Distance-Based Pricing
Air India said that following the government’s move to cap Aviation Turbine Fuel (ATF) price hikes at 25 per cent for domestic flights, it has shifted from a flat surcharge model to a distance-based grid system.
For international operations, where no such cap exists, the airline is implementing steeper surcharge adjustments.
Jet Fuel Prices Nearly Double
Citing IATA data, Air India said the global average jet fuel price surged to USD 195.19 per barrel for the week ending March 27, compared to USD 99.40 at the end of February, marking an increase of nearly 100 per cent.
ATF accounts for around 40–45 per cent of an airline’s total operating cost, making fuel price fluctuations a major concern.
The airline also highlighted a sharp rise in refinery margins (crack spread), which jumped from USD 27.83 per barrel to USD 81.44 within three weeks, further intensifying cost pressures.
Airlines Under Cost Pressure
Air India said the revised surcharge does not fully offset the steep increase in fuel costs, especially on international routes, and that the airline continues to absorb a significant portion of the burden.
Meanwhile, rival carrier IndiGo has already increased fuel surcharges, indicating broader cost pressures across the aviation sector.