Over the past three months, jet fuel costs have surged nearly 25 per cent, driven by geopolitical tensions in West Asia and disruptions in shipping through the Strait of Hormuz.
Air India Group airlines and Akasa Air announced an upward revision in fuel surcharges on October 9, only three days after IndiGo introduced similar increases. The move comes amid sustained volatility in global energy markets, with ATF prices climbing 13.22 per cent in October alone to ₹137 per litre, following consecutive hikes in August and September.
Over the past three months, jet fuel costs have surged nearly 25 per cent, driven by geopolitical tensions in West Asia and disruptions in shipping through the Strait of Hormuz.
Air India said the latest increase in fuel prices has further elevated operating costs. Akasa Air echoed the sentiment, noting that ATF constitutes a significant component of operating costs and that sustained increases have placed pressure across the industry.
Air India revised its domestic surcharges to ₹400 for flights up to 500 km, ₹600 for 501-1,000 km, ₹850 for 1,001-1,500 km, and ₹1,200 for flights above 1,500 km. Akasa Air’s domestic surcharges range from ₹375 for short sectors up to 500 km to ₹1,150 for flights above 1,500 km. These increases mirror IndiGo’s earlier adjustments, which raised domestic surcharges to between ₹375 and ₹1,300 depending on distance.
Air India’s international surcharges now stand at $215 for North America, $210 for Australia, $135 for Europe including the UK, and $55 for West Asia (Middle East). Akasa Air has introduced a flat surcharge of ₹2,500 on routes to Kuwait, Qatar, Saudi Arabia, the UAE, Thailand and Vietnam. IndiGo’s international surcharges, announced earlier, range from ₹1,000 for short‑haul SAARC flights to ₹10,000 for Europe.
The fare hikes highlight the mounting pressure on Indian carriers as fuel costs rise to decade‑high levels. Airlines are attempting to balance cost recovery with customer affordability, opting for calibrated surcharges rather than fully passing on the increase. Analysts expect continued volatility in ATF prices to weigh on margins, particularly for low‑cost carriers operating on thinner spreads.