Air India, Air India Express, Akasa hike fuel surcharges amid rising costs

Air India, Air India Express and budget carrier Akasa Air have rolled out fuel surcharges or increased existing levies from October 9, citing elevated aviation turbine fuel (ATF) costs as the primary driver. The carriers' decisions reflect sector-wide efforts to manage operating expenses as crude oil prices remain volatile due to ongoing tensions in the West Asia region.

IndiGo, India's largest airline by market share, had previously adjusted its fuel surcharge structure, prompting other carriers to reassess their pricing strategies. The surcharge mechanism allows airlines to pass on a portion of fuel cost fluctuations to passengers while maintaining base fares.

Air India operates both its full-service and low-cost carrier brands, while Akasa Air, a newer entrant to India's aviation market, has similarly introduced the levy. The surcharges apply across domestic and international routes, though exact surcharge amounts vary by carrier and flight distance.

The aviation sector remains sensitive to crude oil price movements, with fuel typically accounting for a significant portion of operating costs. Analysts expect the surcharges to remain in effect as long as crude prices sustain elevated levels due to geopolitical uncertainties.