Airline fuel surcharge increases by Air India Group and Akasa will make domestic and international travel more expensive, adding pressure on passengers as aviation turbine fuel prices rise and the rupee weakens. The changes come during the festive travel period, when higher fares are already pushing some price-sensitive domestic travellers towards other modes of transport.
Air India, Air India Express and Akasa have raised their fuel surcharges after IndiGo, according to a Times of India report. Air India Group’s revised domestic surcharge is now distance-based, ranging from Rs 400 for flights of up to 500 km to Rs 1,200 for journeys longer than 2,000 km.
The group has also increased the surcharge on international flights. The revised amounts range from $55 for services to West Asia to $215 for flights to North America. The distance- and destination-based structure means that the additional charge will vary depending on the length and geography of a passenger’s journey.
Air India said the latest increase in fuel prices had raised airline operating costs. “Fuel continuing to account for a substantial proportion of overall airline expenditure,” the airline said in a statement cited by the report. The carrier also pointed to the combined effect of higher aviation turbine fuel prices and a falling rupee.
Akasa has revised its fuel surcharge range from the earlier Rs 199-Rs 1,300 band to Rs 375-Rs 2,500. The upper end of the revised range is significantly higher than its previous maximum, increasing the additional cost attached to longer or more fuel-intensive journeys.
The surcharge changes arrive as domestic air traffic is beginning to decline, according to the report, with higher fares prompting some travellers to reconsider flying. The shift is significant for the transport system because air travel competes with rail and road services for price-sensitive passengers, particularly on domestic routes where journey costs influence the choice of mode.
For passengers, the revised charges will be added to the overall price of tickets rather than appearing as a uniform increase across all routes. The impact will therefore depend on the airline, route length, destination and applicable surcharge category. Air India Group’s domestic schedule now explicitly links the surcharge to distance, while its international charges differ by region.
The changes also show how movements in fuel prices and currency values can quickly reach consumers through airline pricing. Carriers use fuel surcharges to pass on part of the increase in operating costs, while passengers encounter the effect through higher ticket prices. The latest revisions are expected to make flying costlier during the festive season, when travel demand traditionally places additional pressure on fares.
The new surcharge ranges are now the applicable figures reported for Air India Group and Akasa, while the broader effect on passenger demand and travel patterns will depend on how fares evolve across competing transport modes.
