Air travel is set to become more expensive as Air India, Air India Express and Akasa Air on Thursday announced revised fuel surcharges on domestic and international flights, following a similar increase by IndiGo earlier this week. The latest revisions come amid a sharp rise in aviation turbine fuel (ATF) prices, driven by geopolitical tensions in West Asia and volatility in global energy markets.
Air India and Air India Express will impose revised domestic surcharges ranging from Rs 400 to Rs 1,200, depending on the distance travelled, while Akasa Air has announced a distance-based levy of Rs 375 to Rs 1,150. The changes will apply to new bookings from October 9, adding to the cost of air travel during the festive season.
Air India revises charges
Air India and its low-cost subsidiary Air India Express said the revised fuel surcharges were intended to partially offset the additional expenditure arising from higher ATF prices. The airlines said aviation fuel had witnessed significant volatility in recent months, placing sustained pressure on operating costs.
Under the revised structure, passengers travelling up to 500 kilometres will pay a fuel surcharge of Rs 400, while those flying between 501 and 1,000 kilometres will be charged Rs 600. The levy will increase to Rs 850 for journeys between 1,001 and 1,500 kilometres and Rs 1,200 for flights covering 1,501 kilometres or more.
The revised charges represent an increase of approximately 34 to 60 per cent over the previous distance-based surcharge structure, under which domestic levies ranged from Rs 299 to Rs 899.
The new charges will apply to Air India Express bookings made from midnight on October 9 and Air India bookings made from 11 am the same day.
International fares affected
Air India and Air India Express have also revised fuel surcharges on selected international routes. Passengers travelling to North America will face a surcharge of $215, while flights to Australia will attract a levy of $210.
For Europe, including the United Kingdom, the surcharge has been fixed at $135, while passengers travelling to West Asia and the Middle East will pay $55.
The revised international charges represent an increase over the rates previously applicable to several destinations. However, some of the new levies remain below the peak levels introduced earlier this year when aviation fuel prices experienced another sharp increase.
The airlines said the revised surcharges would be reviewed periodically, depending on fuel prices and broader operating conditions.
Akasa introduces new structure
Akasa Air also announced a revised fuel surcharge structure for domestic and international flights, effective from 12.01 am on October 9. The airline said the move was necessary to partially recover the additional costs arising from the sustained increase in aviation fuel prices.
For domestic journeys of up to 500 kilometres, Akasa will charge Rs 375. Flights between 501 and 1,000 kilometres will attract Rs 600, while those covering 1,001 to 1,500 kilometres will carry a surcharge of Rs 900.
Passengers travelling more than 1,500 kilometres will pay Rs 1,150 as a fuel surcharge. The airline has shifted to a distance-based structure, replacing its earlier method of calculating domestic fuel charges according to flight duration.
For international operations, Akasa has introduced a uniform surcharge of Rs 2,500 on flights between India and six countries — Kuwait, Qatar, Saudi Arabia, the United Arab Emirates, Thailand and Vietnam.
Akasa said it had adopted a measured approach to offset only part of the additional fuel expenditure rather than passing the entire increase on to passengers.
IndiGo raised charges earlier
The latest announcements follow IndiGo's decision earlier this week to increase fuel surcharges across its domestic and international network. The country's largest airline implemented the revised charges for new bookings from October 6.
IndiGo increased its domestic fuel surcharge by Rs 100 to Rs 350, depending on the distance travelled. Under the revised structure, passengers flying up to 500 kilometres pay Rs 375, while those travelling between 501 and 1,000 kilometres are charged Rs 600.
The surcharge rises to Rs 900 for flights between 1,001 and 1,500 kilometres, Rs 1,150 for journeys between 1,501 and 2,000 kilometres, and Rs 1,300 for flights exceeding 2,000 kilometres.
The airline also revised charges on international routes, citing the continuing increase in fuel expenditure. It was IndiGo's second revision of fuel surcharges since introducing the levy in March.
Fuel prices drive increases
The latest round of surcharge revisions comes as ATF prices continue to rise sharply, reflecting the impact of the West Asia conflict on international energy markets. Disruptions to crude oil supplies and elevated global fuel prices have increased costs for airlines, which remain particularly vulnerable to fluctuations in aviation fuel rates.
ATF typically accounts for around 40 per cent of an Indian airline's operating expenditure, making it one of the largest components of the industry's cost structure.
In Delhi, aviation fuel prices have risen from approximately Rs 110 per litre to around Rs 137 per litre, including an increase of about 13 per cent in October alone.
Higher fuel costs have placed additional pressure on airline finances, prompting carriers to recover part of the expenditure through separate surcharges rather than relying entirely on adjustments to base fares.
Passengers face higher fares
The revisions mean passengers booking domestic and international flights from October 9 will have to factor in additional fuel-related charges. The final ticket price will continue to depend on the base fare, route, travel date, demand and applicable taxes.
The timing is significant as airlines prepare for increased passenger movement during the festive season. Higher surcharges could add to travel expenses for families and individuals planning journeys during Durga Puja, Diwali and the year-end holiday period.
The effect will be particularly noticeable on longer domestic routes, where the revised charges are substantially higher than those applicable to short-distance flights.
Airlines to review levies
Air India, Air India Express and Akasa have indicated that the revised surcharges will remain subject to periodic review. Any subsequent changes will depend on movements in aviation fuel prices and the broader operating environment.
The airlines maintain that the increases are intended to recover only a portion of the additional costs rather than the entire financial burden created by higher ATF prices.
With IndiGo, Air India, Air India Express and Akasa now revising their fuel surcharges within days of one another, passengers face a broad-based increase in flying costs across much of India's domestic aviation market. Whether the levies are reduced in the coming months will depend largely on the direction of global energy prices and the extent to which geopolitical tensions ease.