Air India, Akasa Air raise fares as aviation fuel costs spike

Air India and Akasa Air have joined low-cost carrier IndiGo in raising passenger fares, citing a sharp increase in aviation turbine fuel (ATF) prices. The move reflects ongoing pressure on airline balance sheets as fuel continues to represent a substantial portion of operating costs.

The fuel price hike has forced carriers to reassess their pricing strategies to maintain operational viability. Airlines typically pass on a portion of rising fuel costs to passengers through surcharges or fare adjustments, a common practice in the aviation industry when crude oil prices spike.

ATF prices have remained volatile, influenced by global crude oil market dynamics and refinery margins. For Indian carriers operating on both domestic and international routes, fuel costs directly impact profitability and competitiveness. The surcharges imposed by major carriers are expected to affect passenger bookings across the sector.

The industry has faced mounting pressure on margins due to sustained high fuel costs, even as passenger demand remains strong. Airlines have been balancing the need to maintain competitive pricing while absorbing higher operational expenses. This latest round of fare increases underscores the ongoing challenges carriers face in managing fuel-related cost pressures.