Festive rush: Airlines hike fuel surcharge as ATF prices soar

Mumbai| Delhi: Airlines are raising fuel surcharges on domestic and international flights ahead of the festive travel season as a sharp rise in aviation turbine fuel (ATF) prices adds to operating costs. Air India, Air India Express and Akasa Air on Thursday announced higher fuel charges, following IndiGo's increase earlier this week. The moves come as airlines face higher fuel costs amid geopolitical tensions and elevated global energy prices, just as demand typically strengthens around Diwali and the year-end holiday period.

ATF prices rose by about ₹16 a litre from October 1, adding to the cost burden for carriers. Fuel is 30-40% variable costs for an airline, and sustained increases can squeeze margins unless part of the increase is passed on to passengers. Air India and Air India Express will impose a domestic surcharge of ₹400 on flights up to 500 km, rising to ₹1,200 on flights above 1,500 km, on new bookings from October 9. International surcharges range from $55 for West Asia and the Middle East to $215 for North America.


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Akasa Air is introducing a domestic surcharge of ₹375 for flights up to 500 km and ₹1,150 for flights above 1,500 km. It will also levy ₹2,500 on flights to Kuwait, Qatar, Saudi Arabia, the UAE, Thailand and Vietnam.