After IndiGo, Air India and Air India Express hike fuel surcharge as ATF prices rise

Air India and Air India Express on Thursday announced a hike in fuel surcharges on domestic and international routes, joining IndiGo in raising fares amid an increase in aviation turbine fuel prices.

The revised surcharge for Air India Express will apply to new bookings made from October 9, while the changes for Air India will take effect from 11am the same day.

The surcharge will vary depending on the distance and route.

For domestic flights, Air India and Air India Express will levy a fuel surcharge of ₹400 on sectors up to 500 km, ₹600 on routes between 501 and 1,000 km, and ₹850 on flights between 1,001 and 1,500 km.

The surcharge will be ₹1,200 for domestic flights covering 1,501-2,000 km and those above 2,000 km.

On international sectors, the revised surcharge will be $215 for North America, $210 for Australia, $135 for Europe, including the UK, and $55 for West Asia and the Middle East.

The increases come after ATF prices for domestic airlines were raised by ₹16 per litre from Thursday to ₹137 per litre from ₹121, according to state-owned oil companies.

The latest increase followed a ₹6.28 per litre hike in September and a ₹5 per litre increase in August.

“The latest increase in fuel prices has further elevated operating costs for airlines, with fuel continuing to account for a substantial proportion of overall airline expenditure,” Air India said in a statement.

The airlines said the surcharge revision was calibrated to partially offset the higher cost burden.

Air India and Air India Express will periodically review the surcharge and make adjustments depending on the fuel price situation.

IndiGo has already increased fuel charges on domestic and international flights.

The country's largest airline raised domestic fuel charges to ₹375 for flights up to 500 km, ₹600 for 501-1,000 km, ₹900 for 1,001-1,500 km, ₹1,150 for 1,501-2,000 km and ₹1,300 for flights above 2,000 km.

For international flights, IndiGo imposed a charge of ₹1,000 for routes up to 500 km and ₹3,000 for routes of 501 km and above in the SAARC region.

The charge was set at ₹5,500 for Southeast Asia, GCC, Middle East, and North and East Asia routes.

IndiGo's revised charges came into effect from October 6.