Air India vs IndiGo vs Akasa: Which Airline Hits Your Wallet Harder As Fuel Surcharges Rise?

Airlines Fuel Surcharge Hike: India's two major Airlines--Indigo and Air India--have announced updated fuel surcharges for domestic and international routes this month so far after a steep uptick in Aviation Turbine Fuel (ATF) price. Air India Group announced the updated surcharge rates on April 7, and the same will be effective from April 8 on major routes, while Indigo revised the rates last week--effective from April 2, just after average ATF rates were revealed.

The developments put more pressure on customers' pockets who are already buying tickets at higher rates post airline levied the first round of fuel surcharge last month.

A Comparison of Fuel Surcharge On Domestic Routes

Fuel Surcharge On International Routes

Indigo: Fuel surcharge for up to 500 km within the Indian subcontinent is Rs 900 and Rs 2,500 for distances more than 500 km. Longer routes attract Rs 3,000 for up to 2,000 km. The fuel surcharge for flights to the Gulf and Middle East is 5,000 rupees. In Southeast Asia and China, it is 3,500 rupees for flights up to 2,000 km and 5,000 rupees for flights over 2,000 km. It is 5,000 rupees for flights to Africa and 7,500 rupees for flights to Greece and Turkey. The surcharge for flights to the UK and Europe is 10,000 rupees.

Also Read: Air India Revises Fuel-Surcharge Amid ATF Price Surge; Here's How Much Ticket Rates Will Rise

Air India: For SAARC (excluding Bangladesh)- $24, West Asia or Middle East- $50, China and Southeast Asia $D100, Singapore $60, Africa $130, Europe $205, North America $280, Australia $280.

Other Airlines

The other Indian Airlines, including Akasa Air, have not announced a fresh fuel surcharge yet. The domestic and international flights continue to attract the same fuel surcharge as it was announced last month. Akasa announced charges between Rs 199 and Rs 1,300 on domestic and international tickets, depending on flight distance and duration. 

ATF Price Skyrockets

The rate of ATF--which is also known as Jet Fuel, skryrocketed nealry 100 per cent this month to nealry $200 per barrel from approx $99 per barrel in the end of February due to ongoing geo-political crisis in Middle East that has disrupted the global energy supply chain.

As per the latest data from the International Air Transport Association (IATA), the global average jet fuel price was at $195.19 per barrel for the week ending 27 March, up from nearly 100 per cent from $99.40 at the end of February.

Government Intervention Helps Curb Massive Ticket Price Hike

Civil Aviation Minister K Ram Mohan Naidu noted in X that kerosene prices – deregulated since 2001 and revised monthly in accordance with international standards – are expected to rise by more than 100 per cent from April 1 due to the closure of the Strait of Hormuz.

Also Read: West Asia Crisis Hits India's Housing Market; Sales Dips 4% In January-March Period.

The state-owned oil companies, in consultation with the Ministry of Civil Aviation, implemented a tentative and gradual increase of 25 per cent (Rs 15 per litre) for domestic flights, the minister informed. 

According to the minister, the gradual increase will save passengers from steep price increases and ease costs for airlines.