Air travel is set to become more expensive as Air India and Air India Express have announced an increase in fuel surcharges on domestic and international flights from October 9. The move comes amid a sharp rise and continued volatility in Aviation Turbine Fuel (ATF) prices, which has put additional pressure on airline operating costs. The latest revision means passengers booking flights with the two Tata Group airlines will have to pay higher fuel-related charges, with the exact increase depending on the distance for domestic journeys and the destination for international services.
Air India said the aviation fuel market has remained volatile in recent months, largely because of geopolitical developments and continued pressure on global energy markets. Since fuel represents a major part of an airline’s operating expenditure, the increase in ATF prices has directly added to the cost of running flights. “The latest increase in fuel prices has further elevated operating costs for airlines, with fuel continuing to account for a substantial proportion of overall airline expenditure,” the airline said.
How much will Air India and Air India Express passengers pay?
For domestic flights, the revised fuel surcharge imposed by Air India and Air India Express will range between Rs 400 and Rs 1,200, depending on the distance of the journey. For international flights, the surcharge will vary between USD 55 and USD 215. The applicable amount will depend on the region and country to which the passenger is travelling.
The revised charges will apply from October 9, meaning passengers travelling after the effective date could see a higher overall ticket cost even if the base airfare remains unchanged.
Akasa Air also revises fuel surcharge
Akasa Air has also announced changes to its fuel surcharge structure, with the revised charges coming into effect from October 9. The airline said it will reintroduce fuel surcharges on domestic flights and increase the surcharge applicable to its international services. Akasa Air had introduced fuel surcharges for both domestic and international flights in March, but later withdrew the charge for domestic services.
Under the latest revision, the domestic fuel surcharge will range from Rs 375 to Rs 1,150, depending on the distance travelled. For international services, the revised surcharge will be Rs 2,500.
“ATF (Aviation Turbine Fuel) constitutes a significant component of airline operating costs, and the continued increase in fuel prices has placed sustained pressure on airline operating costs across the industry. “In view of the prevailing fuel price environment, Akasa Air has taken a measured approach to partially offset the impact,” the airline said.
Why are airlines increasing fuel surcharges?
Jet fuel is one of the biggest expenses for airlines. ATF accounts for around 40 per cent of an airline’s operational costs, making fluctuations in fuel prices particularly important for the aviation industry. When fuel prices rise for a sustained period, airlines face higher costs for operating their aircraft. Fuel surcharges are one way airlines seek to partially offset that additional financial burden. The latest decisions by Air India and Air India Express come against the backdrop of similar moves by other carriers. IndiGo, India’s largest airline, had also announced an increase in its fuel surcharge shortly before Air India’s latest revision.
What does the surcharge hike mean for travellers?
For passengers, the immediate impact is straightforward: the total amount payable for a flight can increase because of the additional fuel surcharge. The impact will not be uniform for every traveller. Domestic passengers on longer routes are likely to face a higher surcharge than those travelling shorter distances under the distance-based slabs. International passengers will see the applicable charge vary according to their destination or region. The increase also comes at a time when several airlines are adjusting fuel-related charges, indicating that higher aviation fuel costs are putting pressure across the industry rather than affecting just one carrier.
What passengers should check before booking
Travellers planning to fly from October 9 should check the final fare breakdown before completing their booking. The base fare alone may not reflect the full impact of the latest changes, as the revised fuel surcharge forms part of the overall amount payable for the ticket. Passengers comparing fares across airlines should therefore look at the final ticket price, including applicable surcharges and other charges, rather than comparing only the headline airfare.
(With inputs from PTI)
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