Air India has reduced fuel surcharges on several long-haul international routes following a decline in global oil prices, partially rolling back the additional charges introduced earlier this year during the conflict in West Asia.

The revised surcharge structure came into effect on July 1 and applies to flights connecting India with North America, Australia, Europe and the United Kingdom. The move follows a sustained easing in crude oil and jet fuel prices after the sharp increases witnessed during the regional conflict.

Surcharge Reduced on Major International Routes

According to a PTI report, Air India has lowered the fuel surcharge on flights to North America and Australia to USD 200 per ticket from the earlier USD 280.

For services operating to Europe and the United Kingdom, the surcharge has been reduced to USD 125 from USD 205.

However, fuel surcharges on domestic services and other international routes remain unchanged.

Air India had not issued an official statement on the revised pricing at the time of publication.

Additional Charges Introduced During West Asia Conflict

The Air India Group, comprising Air India and Air India Express, introduced fuel surcharges in April after rising geopolitical tensions in West Asia triggered a sharp increase in crude oil and aviation fuel prices.

The surcharge, announced on April 7 and implemented from April 10, ranged from USD 24 to USD 280 on international routes, depending on the destination. Domestic passengers were charged an additional Rs 299 to Rs 899.

At the time, the airline said the measure was necessary to offset rising operational expenses caused by higher fuel prices and airspace restrictions linked to the conflict.

The carrier also adopted a distance-based pricing structure after the government capped increases in domestic Aviation Turbine Fuel (ATF) prices at 25 per cent.

Falling Fuel Prices Ease Cost Pressures

The latest reduction comes as oil markets have stabilised in recent weeks, easing pressure on airlines worldwide.

Earlier, Air India had cited data from the International Air Transport Association (IATA) showing that the average global jet fuel price rose from USD 99.40 per barrel at the end of February to USD 195.19 per barrel in the week ending March 27.

The surge represented an increase of nearly 100 per cent and significantly raised operating costs for carriers.

Aviation turbine fuel remains one of the largest expenses for airlines, accounting for approximately 40 to 45 per cent of total operating costs.

The partial rollback of the surcharge reflects the improvement in fuel prices and marks the first significant reduction in the additional charges imposed during the period of heightened volatility in global energy markets.

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