Air India Adjusts Fuel Surcharges Amid Rising Global Fuel Costs
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New Delhi, April 7 (NationPress) In response to escalating global jet fuel prices, Air India has introduced adjustments to its fuel surcharge for both domestic and international flights. Starting Wednesday, the airline will transition from a universal surcharge to a distance-specific model for domestic routes.
The new surcharge will vary from Rs 299 for flights of up to 500 kilometers to Rs 899 for journeys exceeding 2,000 kilometers.
This decision follows the government's action to limit domestic Aviation Turbine Fuel (ATF) price increases to 25%, allowing airlines to carefully manage the transfer of expenses to their customers.
However, the absence of similar price regulations for international ATF will lead to more significant increases in those routes.
According to the International Air Transport Association (IATA), global jet fuel prices have skyrocketed to $195.19 per barrel for the week ending March 27, nearly double the $99.40 noted at the end of February.
The airline pointed out that this dramatic rise can be attributed to spikes in crude oil prices and refining margins, with the 'crack spread' experiencing a substantial increase recently, resulting in one of the most difficult fuel cost scenarios for airlines in several years.
Post-revision, international route fuel surcharges will be region-dependent, starting at $24 for SAARC destinations (excluding Bangladesh) and escalating to $280 for flights to North America and Australia. European destinations will incur a surcharge of $205.
Despite these adjustments, the airline mentioned that the surcharges do not completely offset the significant fuel cost increases, and Air India continues to bear a considerable portion of the extra expense.
Tickets purchased before the revision will not be subject to the new surcharge unless passengers modify their travel plans, necessitating fare recalculations.
Previously, IndiGo had also raised fuel charges due to the surge in aviation turbine fuel (ATF) prices.