Air India Cuts Fuel Surcharge On Some Routes, Including Europe, North America

Air India on Thursday announced a reduction in the fuel surcharge on some international routes, including North America, Australia and Europe.

The surcharge has been reduced to $200 from $280 along North American and Australian routes and to $125 from $205 on European routes.

Amid easing of tensions in the Middle East, which is currently relatively peaceful compared with hostilities that began in February and continued for several months, prices of global crude oil and aviation turbine fuel have fallen from their astronomical highs.

With relief in prices, airlines are reportedly exploring rolling back the tax. However, before taking a final decision, the airline executives are assessing whether the price cuts are temporary or sustainable in the long term.

Also read: Air India Express Resumes Flights To All Middle East Destinations

Also read: Air India May Restore Some International Flights As Tensions In Gulf Ease

The carriers are currently in a wait-and-watch mode, weighing whether to remove the surcharge entirely or opt for a calibrated, phased withdrawal that balances passenger affordability with profitability, industry sources told NDTV Profit.

Air India announced the surcharges on April 7 to offset the sudden rise in oil and jet fuel prices induced by the war in Iran and the subsequent blockade of the Strait of Hormuz, a maritime chokepoint.

It had said in a statement that the global average jet fuel price rose to $195.19 per barrel for the week ending March 27, up from $ 99.40 at the end of February, a surge of close to 100 per cent.

The revised fuel surcharges are effective from July 1.