Air India and Akasa Air hike fuel surcharges as jet fuel costs rise

Air passengers in India will face higher ticket prices from 9 October as Air India, Air India Express, and Akasa Air introduce or increase fuel surcharges on their flights.

The decision follows a sharp rise in aviation turbine fuel (ATF) prices. The airlines blamed geopolitical tensions in the Middle East for volatile global energy markets, which have driven up their primary operating expense.

The move comes shortly after IndiGo, India's largest carrier, hiked its domestic fuel surcharges by 37% to 50%.

Why are flight ticket prices going up?

Jet fuel is the single largest expense for any airline, typically accounting for up to 40% of running costs. When global oil prices spike, carriers have little choice but to pass some of that burden on to travellers to protect their margins.

In a joint statement, Air India and Air India Express said that fuel prices have faced "significant volatility in recent months" due to global pressures. They noted that the latest price increases have heavily inflated their operational expenses.

Akasa Air, which had previously introduced and then withdrawn a domestic fuel levy, said its decision to bring it back was a measured attempt to recover "only part of the additional fuel expenditure" rather than passing the entire cost to customers.

How much more will Akasa Air flights cost?

For Akasa Air travellers, the new domestic surcharge depends entirely on the distance of the flight. The fees apply to all new bookings made from 12:01 am on 9 October.

• Under 500 km: ‹375
• 501 km to 1,000 km: ‹600
• 1,001 km to 1,500 km: ‹900
• Above 1,500 km: ‹1,150

For international routes, Akasa Air is applying a flat ‹2,500 surcharge. This uniform fee will apply to flights connecting India with six countries: Kuwait, Qatar, Saudi Arabia, the United Arab Emirates, Thailand, and Vietnam. The airline operates a fleet of 43 Boeing 737 MAX aircraft across 30 domestic and seven international cities.

What are the new Air India and Air India Express charges?

Air India and Air India Express are implementing their own tiered surcharges. The new rates apply to Air India Express bookings from midnight on 9 October, and to Air India bookings from 11:00 am on the same day.

On domestic routes, passengers will pay an additional ‹400 to ‹1,200 per one-way flight, depending on the distance and route category.

For international flights, the surcharge is billed in US dollars and varies by region:

• West Asia and Middle East: $55
• Europe: $135
• Australia: $210
• North America: $215

None of the airlines have indicated how long these surcharges will remain in place, though Akasa Air said it would periodically review the levy against shifting fuel prices.