IBNS-CMEDIA: Air India on Tuesday announced a phased increase in fuel surcharges across its domestic and international network, citing a sharp rise in aviation fuel prices triggered by the ongoing conflict between Iran and the United States in the Middle East.
The airline said the surcharge hike would be implemented in three stages and described the move as unavoidable due to factors beyond its control. Air India warned that without revising fuel surcharges, some flights could become commercially unviable.
“Absent such fuel surcharges, it is likely that some flights would be unable to cover operating costs and would have to be cancelled,” the airline said in a statement.
Under the revised structure, fuel surcharges for flights to the Middle East will be set at $10. For routes to Africa, the surcharge will rise by $30 to $90, while flights to Southeast Asia will see an increase of $20 to $60.
The airline said the surcharge levels will be reviewed periodically and adjusted depending on how the situation evolves.
However, Air India Express, the Tata Group-owned airline’s low-cost subsidiary, will not introduce fuel surcharges for now, which may provide some relief to passengers.
Air India also pointed out that aviation turbine fuel (ATF), which accounts for nearly 40 per cent of an airline’s operating costs, has seen a sharp price surge since early March due to supply disruptions.
“In India, the impact is further amplified by high excise duty and VAT on ATF in major metro cities such as Delhi and Mumbai, placing significant pressure on airline operating economics,” the airline said.
Jet fuel is among the most volatile costs for airlines, and Indian carriers are particularly vulnerable to global oil price fluctuations as the country imports most of its crude oil.
