New Delhi: Air India has reduced part of the temporary fuel surcharge it had imposed during the West Asia conflict, lowering charges on flights to North America, Australia, Europe and the United Kingdom after global oil prices eased in recent weeks, according to PTI. The revised fuel surcharge came into effect on July 1.
The airline had introduced the surcharge on April 7, with the revised charges taking effect from April 10, following a sharp rise in crude oil and jet fuel prices during the West Asia conflict. Airspace restrictions during the conflict had also increased operating costs for airlines.
According to the report, the fuel surcharge for flights to North America and Australia has been reduced to USD 200 per ticket from USD 280 earlier. For flights to Europe and the United Kingdom, the surcharge has been lowered to USD 125 from USD 205.
However, fuel surcharges on domestic flights and other international routes remain unchanged. There was no immediate comment from Air India on the latest revision.
The Air India Group, comprising Air India and Air India Express, had introduced fuel surcharges ranging from USD 24 to USD 280 on international flights, excluding certain routes, and between Rs 299 and Rs 899 on domestic flights in April as airlines faced rising fuel costs.
At the time, the airline said it had adopted a calibrated approach after the government capped the increase in domestic Aviation Turbine Fuel (ATF) prices at 25%, replacing a flat domestic surcharge with a distance-based pricing grid.
The latest reduction follows a decline in crude oil prices from the highs recorded during the West Asia conflict, easing pressure on airline operating costs.
Earlier, citing data from the International Air Transport Association (IATA), Air India said the global average jet fuel price had increased to USD 195.19 per barrel for the week ended March 27 from USD 99.40 per barrel at the end of February, an increase of nearly 100%.
Aviation turbine fuel accounts for around 40% to 45% of an airline’s total operating costs, making it one of the largest expenses for carriers.
