The Air India group has announced a phased expansion of fuel surcharges on its domestic and international routes, citing a steep rise in aviation turbine fuel (ATF) prices due to the geopolitical situation in the Gulf region.
In a press statement released on Tuesday, the airline said ATF, which accounts for nearly 40 per cent of an airline`s operating costs, has seen significant escalation from this month because of supply interruptions. In India, the impact is worsened by high excise duty and value-added tax (VAT) on ATF in major cities such as Delhi and Mumbai, putting additional strain on operating economics.
West Asia conflict: Air India to roll out new surcharges in three phases
The new surcharges will be rolled out in three phases for all new bookings, including those on flights operated by Air India Express (which currently does not levy fuel surcharges on any routes).
Phase 1 (effective for bookings made from 12.01 am Indian Standard Time on Thursday, March 12)
Domestic India: Rs 399 (previously not applied)
South Asian Association for Regional Cooperation (SAARC): Rs 399 (previously not applied)
West Asia/Middle East: USD 10 (previously not applied)
Southeast Asia: USD 60 (increase of USD 20 from current USD 40; note: surcharge not previously applied to/from Singapore but will now apply)
Africa: USD 90 (increase of USD 30 from current USD 60).
Phase 2 (effective for bookings from 12.01 am IST on March 18)
Europe: USD 125 (increase of USD 25 from current USD 100)
North America: USD 200 (increase of USD 50 from current USD 150)
Australia: USD 200 (increase of USD 50 from current USD 150).
Phase 3 will cover Far East markets (Hong Kong, Japan, and South Korea) and will be announced later.
Tickets already issued before these dates will not attract the new surcharges unless passengers request changes that require fare recalculation. In the press note, the airline regretted the decision to impose the surcharge, stating they are unavoidable due to external factors. Without such measures, some flights might become unviable and face cancellation, it further stated.
The airline will periodically review the surcharges and adjust them as required by the evolving situation.