Flights to Europe, North America, Australia to get cheaper? Air India cuts fuel surcharge on select routes

Published 3 July 2026 · india

Air India has become the first Indian carrier to reduce fuel surcharges on select international routes following a moderation in global jet fuel prices, according

Air India has become the first Indian carrier to reduce fuel surcharges on select international routes following a moderation in global jet fuel prices, according to an ANI report citing sources. The airline has lowered the fuel surcharge for passengers travelling to Europe to USD 125 from USD 205 charged in April. On routes to North America and Australia, the surcharge has been reduced to USD 200, down from USD 280. So far, no other Indian airline has announced a similar cut in fuel surcharges on overseas services. The revision follows a period of steep volatility in global jet fuel prices that significantly raised operating expenses for airlines worldwide. The average global jet fuel price climbed to USD 195.19 per barrel for the week ending March 27, 2026, nearly doubling from USD 99.40 per barrel recorded at the end of February, marking an increase of almost 100 per cent. At the same time, Aviation Turbine Fuel (ATF), which is derived from refined crude oil, also became more expensive due to a sharp rise in refinery margins, commonly referred to as the crack spread.

Within just three weeks, the crack spread almost tripled, increasing from USD 27.83 per barrel for the week ending February 27 to USD 81.44 per barrel for the week ending March 27. The combined impact of soaring crude oil prices and widening refinery margins created one of the toughest fuel cost environments for the global aviation industry in recent years. As international jet fuel prices have retreated from the highs recorded in March, Air India has chosen to pass on part of the savings to customers flying on long-haul international sectors. The reduced surcharge is expected to lower the overall cost of travel to destinations across Europe, North America and Australia, offering some relief to international passengers. Air India's move is also likely to draw attention across the aviation sector, as rival Indian airlines have yet to announce comparable reductions in fuel surcharges for international flights. The decision is expected to make long-haul travel on these routes marginally more affordable, even as airlines continue to navigate an operating environment shaped by volatile energy markets.

Air India, SIA Engineering sign MoU to strengthen MRO capabilities Air India on Friday signed a Memorandum of Understanding (MoU) with Singapore-based SIA Engineering Company Limited (SIAEC) to explore opportunities for collaboration in the Maintenance, Repair and Overhaul (MRO) sector, with the objective of supporting India's emergence as a global aviation MRO hub. The MoU was signed in Mumbai by Air India Chief Executive Officer and Managing Director Campbell Wilson and SIAEC Chief Executive Officer Chin Yau Seng. According to Air India, the agreement builds on the long-standing relationship between the two companies and is designed to combine SIAEC's technical expertise and MRO capabilities with Air India's rapidly expanding operations. The collaboration is also expected to contribute to the creation of a world-class aircraft maintenance ecosystem in India. As part of the proposed partnership, the two companies will explore the possibility of establishing a joint venture for Maintenance, Repair and Overhaul services in India.