Air India has reduced fuel surcharges on select international routes, becoming the first Indian airline to lower the additional charge amid moderation in global jet fuel prices, according to sources.
Reduction Details
The airline has cut the fuel surcharge per passenger to USD 125 for flights to Europe, down from USD 205 in April. For North America and Australia, the surcharge has been reduced to USD 200 from USD 280. No other Indian airline has announced a similar reduction so far.
Background of Price Surge
The move comes after global jet fuel prices witnessed a sharp surge earlier this year, significantly increasing operating costs for airlines. The global average jet fuel price rose to USD 195.19 per barrel for the week ending March 27, 2026, almost doubling from USD 99.40 per barrel at the end of February, registering an increase of nearly 100 percent.
Aviation Turbine Fuel (ATF), which is produced by refining crude oil, also saw a sharp increase in refinery margins, commonly known as the crack spread. The crack spread nearly tripled within three weeks, rising 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 simultaneous rise in crude oil prices and refinery margins created one of the most challenging fuel cost environments for airlines globally in recent years.
Impact on Passengers
With international jet fuel prices moderating from their March peak, Air India has passed on part of the benefit to passengers travelling on long-haul international routes. The reduction is expected to make travel to Europe, North America and Australia slightly more affordable for passengers.
Industry Implications
Air India's decision will be closely watched by the aviation industry, as no other Indian carrier has yet announced similar reductions in fuel surcharge on international routes. The reduction is expected to make long haul travel slightly more affordable on these routes even as the broader aviation sector grapples with fluctuating energy prices.
