Lower fuel surcharge expected to reduce Air India’s long-haul international fares.
Air India has announced a reduction in fuel surcharges on select international routes, including North America, Australia, Europe, and the UK, as global crude oil and jet fuel prices ease.
According to a PTI report, the surcharge has been cut from $280 to $200 on North America and Australia routes, and from $205 to $125 on European and UK services.
The revised rates reportedly came into effect from July 1, with Air India offering no official comment.
Oil price relief drives recalibration
The move comes amid easing geopolitical tensions in West Asia, which had previously pushed up crude oil and aviation turbine fuel (ATF) prices.
With global fuel prices easing from earlier highs, airlines are reassessing their surcharge structures and considering whether the reductions will be temporary or sustained.
According to industry sources cited by NDTV, carriers are taking a “wait-and-watch” approach, evaluating either a complete removal of fuel surcharges or a gradual rollback that balances passenger demand with profitability.
From sharp hike to gradual correction
Air India first introduced fuel surcharges on April 7 after a spike in oil prices triggered by conflict in West Asia and disruptions in the Strait of Hormuz.
At the time, global jet fuel prices had surged to $195.19 per barrel for the week ending March 27, up from $99.40 at the end of February—a near 100% increase, according to IATA data.
The surcharge had been set between $24 and $280 on international routes and ₹299 to ₹899 on domestic flights.
Aviation turbine fuel (ATF) accounts for roughly 40–45% of total airline operating costs, making fuel prices a key factor in determining fares.
Wider network adjustments continue
Air India Express, the airline’s budget arm, has also restored full connectivity to West Asia, resuming services to Salalah in Oman and Kuwait after earlier suspensions linked to regional conflict-related disruptions.
The carrier said services are being restored in phases as fuel prices stabilise and airspace conditions improve.
Gradual resumption of West Asia routes
Key route resumptions include:
- Kozhikode–Salalah: twice weekly from July 2
- Kozhikode–Kuwait: weekly from July 3, increasing to three flights per week
- Bengaluru–Kuwait: weekly from July 4, rising to three weekly from July 7
- Muscat–Mangaluru: resumed from July 3
All Kuwait-bound flights will operate from Terminal 4 at Kuwait International Airport.
Expanding regional connectivity
Air India Express now connects 13 destinations across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, operating around 780 weekly flights between India and West Asia.
The airline continues to expand its network, recently launching new routes including Navi Mumbai–Abu Dhabi, Guwahati–Dubai, and Bengaluru–Phuket, among others.
With these additions, Air India Express now operates around 415 weekly flights from Bengaluru and 85 weekly flights from Kozhikode, further strengthening its domestic and international connectivity footprint.
