Air India Increases Fuel Surcharges on Flights

Air India announced on Tuesday a revision to its fuel surcharge structure, increasing costs for passengers on domestic and international flights amid a sharp global rise in jet fuel prices. The changes, effective April 8 for domestic routes and April 10 for international ones, will apply across the Air India group, including its low-cost subsidiary Air India Express.

The airline cited surging aviation turbine fuel prices as the primary driver, with global jet fuel averaging $195.19 per barrel for the week ending March 27, nearly double the $99.40 recorded at the end of February, according to International Air Transport Association data. Refining margins, or crack spreads, also tripled in that period, from $27.83 to $81.44 per barrel, exacerbating costs that account for 40 to 45 percent of an airline's expenses. Air India stated that these surcharges do not fully offset the increases, particularly on international routes, and the carrier continues to absorb a significant portion.

For domestic flights, Air India shifted from a flat surcharge to a distance-based model, allowing for more targeted adjustments following the government's decision to cap aviation turbine fuel price...