Air India to Increase Fares Due to Rising Fuel Costs Amid Geopolitical Tensions
Air India fares set to rise amid fuel crisis, international tickets to see sharper impact
Hindustan TimesImage: Hindustan Times
Air India will raise airfares due to increased fuel surcharges driven by soaring global jet fuel prices amidst the US-Iran conflict. The new surcharge structure takes effect from April 8 for domestic flights and April 10 for international routes, with significant increases expected, especially for long-haul destinations.
- 01Air India will implement a distance-based fuel surcharge for domestic flights, ranging from ₹299 to ₹899.
- 02International fares will see sharper increases, with surcharges up to $280 for long-haul routes.
- 03Global jet fuel prices have nearly doubled, reaching $195.19 per barrel.
- 04The rise in fuel costs is attributed to geopolitical tensions affecting oil supply.
- 05Other airlines, including IndiGo, are also adjusting their fuel surcharge structures.
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Air India, owned by the Tata Group, is set to increase airfares due to revised fuel surcharges resulting from a significant rise in global jet fuel prices, which have surged to $195.19 per barrel, nearly doubling from around $99 just weeks ago. The new surcharge structure will take effect on April 8 for domestic flights and April 10 for international routes. For domestic travel, Air India will shift to a distance-based surcharge model, charging ₹299 for short-haul flights (0–500 km) and up to ₹899 for longer routes exceeding 2,000 km. In contrast, international routes will face even steeper surcharges, ranging from $24 for nearby SAARC destinations to $280 for long-haul flights to regions like North America and Australia. This increase follows a broader trend in the airline industry, as carriers are compelled to pass on rising operational costs to passengers amid geopolitical tensions impacting oil supply, particularly around the Strait of Hormuz. The International Air Transport Association (IATA) has noted that fuel typically comprises about 40% of operating expenses for airlines, making these adjustments necessary.
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The fare increases will affect travelers, particularly those flying domestically and internationally, resulting in higher travel costs.
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