Air India cuts fuel surcharge on North America, Europe flights as oil eases

Air India has reduced temporary fuel surcharges on select long-haul routes from July 1. The move follows easing oil prices after the West Asia conflict had pushed up operating costs.

In Short

• Surcharge cut to USD 200 from USD 280 for North America and Australia
• Europe and UK surcharge lowered to USD 125 from USD 205
• Reduction follows easing of global crude oil prices post West Asia conflict

Air India has rolled back a part of the temporary fuel surcharge it had imposed during the West Asia conflict, reducing charges on flights to North America, Australia, Europe and the United Kingdom after global oil prices eased in recent weeks, reported PTI.

The revised surcharge came into effect from July 1.

The airline had introduced the fuel surcharge on April 7, with the revised charges taking effect from April 10, after the conflict in West Asia sent crude oil and jet fuel prices soaring. Airspace restrictions during the conflict had also increased operating costs for airlines.

As per the report, the fuel surcharge for flights to North America and Australia has been reduced to USD 200 per ticket from USD 280 earlier. For services to Europe and the UK, the surcharge has been cut to USD 125 from USD 205.

However, fuel surcharges on domestic flights and other international routes remain unchanged. There was no immediate comment from Air India on the latest revision.

WHEN WAS THE SURCHARGE IMPOSED?

The Air India Group, which comprises Air India and Air India Express, had announced fuel surcharges ranging from USD 24 to USD 280 on international flights, excluding certain routes, and between Rs 299 and Rs 899 on domestic flights in April as airlines grappled with surging fuel costs.

At the time, the airline had said it was adopting a calibrated approach after the government capped the increase in domestic Aviation Turbine Fuel (ATF) prices at 25%, shifting from a flat domestic surcharge to a distance-based pricing grid.

WHY IS AIR INDIA CUTTING THE SURCHARGE?

The latest reduction comes after crude oil prices retreated sharply from the highs seen during the West Asia conflict, easing pressure on airline operating costs.

Earlier, citing data from the International Air Transport Association (IATA), Air India had said the global average jet fuel price had surged to USD 195.19 per barrel for the week ended March 27 from USD 99.40 per barrel at the end of February, marking an increase of nearly 100%.

Aviation turbine fuel accounts for around 40% to 45% of an airline's total operating costs, making it one of the biggest expenses for carriers.

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