Air India cuts fuel surcharge on international routes as oil prices ease: Report

Air India on Thursday announced a reduction in fuel surcharges on select international routes, including North America, Australia, Europe and the UK, as global oil and jet fuel prices ease.

According to a PTI report, the surcharge has been cut to $200 from $280 on North America and Australia routes, and to $125 from $205 on European and UK services.

The revised fuel surcharges took effect from July 1, according to reports, with no comment from Air India.

Oil price relief drives recalibration

The move comes amid easing geopolitical tensions in West Asia, which had earlier pushed crude oil and aviation turbine fuel (ATF) prices sharply higher.

With global fuel prices now cooling from their earlier peaks, airlines are reassessing surcharge structures and weighing whether reductions are temporary or sustainable.

According to industry sources cited by NDTV, carriers are adopting a “wait-and-watch” approach, weighing either a full removal of surcharges or a gradual rollback that balances passenger fares with profitability.

From sharp hike to gradual correction

Air India first introduced fuel surcharges on April 7, following a surge in oil prices triggered by conflict in West Asia and disruptions in the Strait of Hormuz.

At the time, global jet fuel prices had jumped to $195.19 per barrel for the week ending March 27, up from $99.40 at the end of February — a near 100% rise, according to IATA data.

The surcharge range had then been set between $24 and $280 for international routes and ₹299 to ₹899 for domestic flights.

ATF accounts for around 40–45% of total airline operating costs, making fuel pricing a key driver of fares.

Wider network adjustments continue

Air India Express, the airline’s budget arm, has also restored full West Asia connectivity, resuming services to Salalah in Oman and Kuwait after earlier suspensions during regional conflict-related disruptions.

The carrier said services are being restored in phases as fuel prices stabilise and airspace conditions improve.

Gradual resumption of West Asia routes

Key route resumptions include:

• Kozhikode–Salalah: twice weekly from July 2

• Kozhikode–Kuwait: weekly from July 3, rising to three weekly flights

• Bengaluru–Kuwait: weekly from July 4, increasing to three weekly from July 7

• Muscat–Mangaluru: resumed from July 3

All Kuwait-bound services will operate from Terminal 4 at Kuwait International Airport.

Expanding regional connectivity

Air India Express now connects 13 destinations across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, operating around 780 weekly flights between India and West Asia.

The airline continues to expand its network, recently adding new routes such as Navi Mumbai–Abu Dhabi, Guwahati–Dubai, and Bengaluru–Phuket, among others.

With these additions, Air India Express operates around 415 weekly flights from Bengaluru and 85 weekly flights from Kozhikode, strengthening its domestic–international connectivity footprint.

With inputs from ANI and IANS