Air India slashes fuel surcharges on long-haul international flights as oil prices fall: How airfares will change

Published 2 July 2026 · finance

Air India has reduced fuel surcharges on flights to North America, Australia, Europe and the United Kingdom following a decline in global oil prices over

Air India has reduced fuel surcharges on flights to North America, Australia, Europe and the United Kingdom following a decline in global oil prices over the past few weeks, PTI reported on Thursday, citing sources. The airline had introduced fuel surcharges on 7 April after a sharp rise in crude oil and aviation fuel prices triggered by the conflict in West Asia. Increased fuel costs, coupled with airspace restrictions, had significantly raised the carrier's operating expenses. Also Read | Air India brings back e CMD Pradeep Kharola amid CEO transition plan According to the PTI report, the fuel surcharge for flights to North America and Australia has been lowered to USD 200 per ticket from USD 280. For services to Europe and the UK, the surcharge has been reduced to USD 125 from USD 205. The revised fuel surcharge rates came into effect on 1 July, PTI reported.

However, fuel surcharges for Air India's other international routes and domestic flights remain unchanged. The earlier surcharge for services to North America, Australia, Europe and the UK had been implemented from 10 April. On 7 April, the Air India Group had announced fuel surcharges ranging between USD 24 and USD 280 on most international routes, while domestic passengers were charged an additional ₹299 to ₹899 depending on the route. The Air India Group comprises both Air India and Air India Express. Calibrated pricing approach At the time, the airline said it had adopted a calibrated pricing approach after the government's decision to cap domestic Aviation Turbine Fuel (ATF) price hikes at 25 per cent. Under the revised structure, the group replaced a flat domestic fuel surcharge with a distance-based pricing grid. Citing data from the International Air Transport Association (IATA), Air India had noted that the global average jet fuel price climbed to USD 195.19 per barrel for the week ending 27 March, compared with USD 99.40 per barrel at the end of February, representing an increase of nearly 100 per cent.

Aviation Turbine Fuel remains one of the biggest expenses for airlines, accounting for around 40-45 per cent of their total operating costs. Air India Express restores full West Asia operations Air India Express on Thursday announced the complete restoration of its flight operations across the West Asia network, with services to Oman and Kuwait set to resume after earlier suspensions caused by regional tensions. The Tata Group-owned airline had temporarily halted flights to select destinations in West Asia following the conflict in the region, which disrupted air travel and led to precautionary operational adjustments. The airline currently operates around 780 weekly flights between India and West Asia, providing direct connectivity from 18 Indian cities to destinations across the region. In a statement, Air India Express said that with the resumption of services to Salalah in Oman and Kuwait, flight operations to all destinations in its West Asia network have now been fully restored.