After IndiGo, Air India, Air India Express and Akasa hike fuel surcharge: How much will fares rise?

Air India and Air India Express on Thursday announced revised fuel surcharges on domestic and select international routes, while Akasa Air introduced a surcharge on domestic flights and revised its existing charges on international routes. The new charges will apply to bookings made from October 9.

For Air India and Air India Express, the revised domestic surcharge will range from Rs 400 on flights covering up to 500 km to Rs 1,200 on sectors above 1,500 km. Flights covering 1,001-1,500 km will attract an Rs 850 surcharge, while the charge for sectors covering 1,501-2,000 km will be Rs 1,200.

The revised charges will apply to new Air India Express bookings made from 00:00 hours IST on October 9, while Air India’s revised surcharge will come into effect for bookings made from 11:00 hours IST on October 9.

Akasa Air will levy a Rs 375 surcharge on domestic sectors of up to 500 km, increasing to Rs 600 for 501-1,000 km, Rs 900 for 1,001-1,500 km and Rs 1,150 for sectors of 1,501 km and above.

On international routes, Akasa Air has fixed a Rs 2,500 fuel surcharge on flights between India and Kuwait, Qatar, Saudi Arabia, the UAE, Thailand and Vietnam.

The airlines have cited the sustained increase and volatility in ATF prices, driven largely by geopolitical developments and pressure on global energy markets.

Fuel accounts for a substantial share of an airline’s operating costs. The latest revisions come at a particularly sensitive time for passengers, with the festive travel period approaching and airlines preparing for higher demand on several domestic and international routes.

While airlines have absorbed fluctuations in fuel prices at various points, the latest round of surcharges signals the extent of the pressure created by the recent increase in operating costs.

Air India and Air India Express said the revised surcharge was intended to partially offset the higher fuel burden while allowing the airlines to continue providing services across their networks. Akasa Air said it had taken a measured approach to partially offset the impact of the prevailing fuel-price environment.

The airlines said the surcharge would be reviewed periodically depending on fuel prices and the broader operating environment.