Air India: In the shadow of the US-Iran war, many countries are facing the brunt of inflation, including India. Following the rise in LPG prices in the country, air travel is now becoming increasingly out of reach for the common man. Tata Group-owned Air India on Tuesday announced an increase in fuel surcharges on domestic and international flights. The rise in jet fuel (ATF) prices due to tensions in the Middle East has been cited as the primary reason.
The airline issued a statement
The airline issued a statement saying that ATF, which accounts for approximately 40 percent of its operational costs, has been rising since the beginning of March. A company spokesperson clarified that fuel prices have risen globally due to oil supply disruptions in the Gulf. The situation in India is further complicated by the high excise and VAT levied on ATF in metropolitan cities like Delhi and Mumbai. This increases costs exponentially, significantly impacting the financial health of airlines.
Air India said, “We regret such an increase, but it is a result of factors beyond our control.” Without the surcharge, many flights would be loss-making and could be cancelled. The increase will be implemented in three phases. In the first phase (from March 12), a surcharge of Rs 399 will be imposed on domestic flights and SAARC countries. There will be a $10 increase for West Asia/Middle East. The increase will be from $40 to $60 for South-East Asia and from $60 to $90 for Africa.
What about pre-booked tickets?
The second phase (starting March 18) will cover Europe, North America, and Australia. The third phase will cover eastern markets like Hong Kong, Japan, and South Korea, with plans for the new surcharge announced later. Importantly, the new surcharge will not apply to pre-booked tickets unless passengers change their dates or travel plans. Air India Express will also not be charged any surcharges. The company promised to review the situation and make adjustments accordingly.