CHENNAI: Air India and Air India Express have announced a fresh increase in airfares for both domestic and international routes, driven by a sharp rise in fuel surcharge costs. The revised rates will come into effect from 9.01 am on Wednesday (April 8).
The move follows a steep increase in aviation turbine fuel (ATF) prices amid the ongoing West Asia situation, with airlines passing on part of the burden to passengers. This marks the second fare hike within a month.
Domestic fares revised with cap in place
For domestic flights, the airline has imposed a fuel surcharge ranging from Rs 299 to Rs 899 per passenger, per sector, based on distance.
Passengers travelling up to 500 km will pay an additional Rs 299, while those flying between 501 km and 1,000 km will see a hike of Rs 399. For distances between 1,001 km and 1,500 km, fares have gone up by Rs 549. Tickets for routes between 1,501 km and 2,000 km have increased by Rs 749, while flights covering over 2,000 km will cost Rs 899 more.
The airline said the revision follows the Centre’s decision to cap domestic ATF price hikes at 25 per cent, and added that it has moved from a flat surcharge to a distance-based system.
Sharp increase for international routes
For international travel, fuel surcharge has been increased between USD 24 and USD 280 per passenger, per sector, depending on the region.
Fares to SAARC nations (excluding Bangladesh) have been raised by USD 24, while West Asia and Middle East routes will see an increase of USD 50. Flights to China and Southeast Asia (excluding Singapore) will cost USD 100 more.
For long-haul routes, the revised surcharge will come into effect from April 10. Passengers flying to Europe, including the United Kingdom, will pay an additional USD 205, while those travelling to North America and Australia will be charged USD 280 more. Africa routes will see a surcharge of USD 60, and Singapore-bound flights USD 130.
Fuel costs surge hits airlines globally
Citing International Air Transport Association data, the airline said global jet fuel prices have nearly doubled, rising from USD 99.40 per barrel at the end of February to USD 195.19 per barrel for the week ending March 27.
ATF accounts for around 40 to 45 per cent of an airline’s total cost. The refinery margin, or crack spread, has also surged sharply, rising from USD 27.83 per barrel to USD 81.44 within three weeks.
Air India said the current surcharge does not fully offset the rise in fuel costs and that it continues to absorb a significant portion of the increase.
More routes to see revision, passengers feel pinch
The airline said fare revisions for destinations such as Bangladesh, Japan, Hong Kong and South Korea will be announced later, subject to regulatory approvals.
Passengers who have already booked tickets will not be affected and can travel at the existing fares. However, any changes in travel date or itinerary will attract the revised rates.
Air India said it will review the surcharge periodically and make changes depending on fuel price trends.