Major Indian Airlines Raise Fuel Surcharges Following Spike in Aviation Turbine Fuel Prices

Air India Group, Air India Express, Akasa Air, and IndiGo have increased fuel surcharges across domestic and international routes following a continued rise in Aviation Turbine Fuel prices. The hike aims to partially offset operating costs as fuel takes up a substantial portion of airline expenditures. Air India's revised domestic one-way surcharges range from ₹400 for flights up to 500 km to ₹1,200 for sectors of 1,501 km and above, with new bookings taking effect on October 9. International surcharges for Air India are set at USD 215 for North America, USD 210 for Australia, USD 135 for Europe including the UK, and USD 55 for West Asia and the Middle East. Akasa Air implemented its revised fuel charges starting October 9, 2026, with domestic fees ranging from ₹375 for distances up to 500 km to ₹1,150 for 1,501 km and above, alongside an international fee of ₹2,500 for flights connecting India to Kuwait, Qatar, Saudi Arabia, the UAE, Thailand, and Vietnam. IndiGo previously raised its charges effective October 6, with domestic fees scaling from ₹375 up to ₹1,300 for distances beyond 2,000 km, and international fees ranging from ₹1,000 for short SAARC routes up to ₹10,000 for Europe. These adjustments follow a September 25 letter from the Federation of Indian Airlines to the civil aviation ministry requesting government measures to ease financial pressure caused by higher fuel prices, the West Asia conflict, airspace restrictions, and rupee depreciation.

Context

Aviation Turbine Fuel constitutes one of the largest single operating expenses for commercial airlines, meaning rapid shifts in global oil prices directly impact ticket pricing. Industry bodies frequently petition governments for tax relief or policy adjustments when external cost pressures mount.