Summary of this article
Air India cuts fuel surcharges on select international flights.
Revised charges apply to flights from July 1 onwards.
Domestic and other international route surcharges remain unchanged.
Air India has reduced fuel surcharges on flights to North America, Australia, Europe and the UK after a decline in oil prices in recent weeks, according to sources. The revised charges have come into effect from July 1.
The fuel surcharge on flights to North America and Australia has been reduced to USD 200 per ticket from USD 280 previously. For flights to Europe and the UK, the surcharge has been cut to USD 125 from USD 205 per ticket.
The airline has not issued an official statement on the latest revision.
However, fuel surcharges on domestic flights and other international routes remain unchanged.
Charges Were Introduced In April
Air India had introduced fuel surcharges in April after a sharp rise in global crude oil and jet fuel prices following the conflict in West Asia. Airspace restrictions during the period had also increased operational costs for airlines.
The revised surcharges announced in April came into effect from April 10. At the time, the Air India Group had imposed fuel surcharges ranging from USD 24 to USD 280 on most international flights, while domestic passengers were charged between Rs 299 and Rs 899 depending on the route.
The Air India Group includes Air India and Air India Express.
Fuel Costs Remain A Major Expense
When the surcharge was introduced, the airline had stated that it was responding to a steep rise in aviation fuel prices. Quoting data from the International Air Transport Association (IATA), it had noted that the global average jet fuel price increased to USD 195.19 per barrel for the week ended March 27, compared with USD 99.40 per barrel at the end of February. This represented an increase of nearly 100 per cent within a month.
The airline had also said that aviation turbine fuel accounts for around 40 to 45 per cent of an airline's total operating costs, making fuel prices one of the biggest factors affecting overall expenses.
Earlier in April, following the government's decision to cap the increase in domestic aviation turbine fuel prices at 25 per cent, the Air India Group had replaced its flat domestic fuel surcharge with a distance-based surcharge structure.
The latest reduction in fuel surcharges on select international routes reflects the easing in fuel prices since the charges were first introduced. However, passengers travelling on domestic routes and other international services will continue to pay the existing fuel surcharge for now.
