Air India will impose a fuel surcharge starting March 12 in response to sharply rising jet fuel prices driven by the ongoing conflict in the Gulf region. The airline plans to phase in the surcharge, affecting all new bookings made from the specified date.
Initial surcharges will be Rs399 for domestic routes and $10 for West Asia flights. Additional increases are scheduled from March 18, with surcharges for European and North American flights rising accordingly. The move underscores the airline's efforts to offset increased operating costs caused by the regional conflict, which has led to airspace closures and longer rerouted flights.
The escalation of tensions in Iran and neighboring countries, including airspace restrictions in Iran, Iraq, Israel, Qatar, and Kuwait, has caused widespread cancellations and rerouting of flights, adding to fuel consumption and operational expenses. While some West Asian routes are gradually reopening, several destinations are still affected by closures, prompting relief flights operated by Indian airlines to return stranded travelers.
Market reactions to the conflict caused crude oil prices to surge past $100 per barrel but later partially receded. The increased oil prices have resulted in higher jet fuel costs, notably in Delhi, where ATF prices have risen from Rs91,393 in February to Rs96,638 in March. The airline highlighted that without implementing surcharges, many flights might face operational difficulties or cancellations in the future.
