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The Air India group has announced revisions to its fuel surcharge structure across domestic and international routes amid a sharp rise in global jet fuel prices.
In a statement, the airline said the decision comes as airlines worldwide face one of the toughest fuel cost environments in recent years. "Air India group today announced further revisions to its fuel surcharge structure across domestic and international routes," the airline said. The airline noted that global jet fuel prices have surged significantly in recent weeks. "According to the latest data published by the International Air Transport Association (IATA), the global average jet fuel price rose to USD 195.19 per barrel for the week ending March 27, 2026, up from USD 99.40 at the end of February, recording a surge of close to 100%," the airline said. It added that the rise has been driven not only by higher crude oil prices but also by a sharp increase in refining margins. "ATF... has seen simultaneous increases in both its crude oil component as well as the refinery margin, known as 'crack spread', with the latter having nearly tripled within three weeks," the airline said. For domestic routes, the airline said it will transition from a flat surcharge structure to a distance-based system starting April 8. "Following the Ministry of Petroleum & Natural Gas' and Ministry of Civil Aviation's decision to cap domestic Aviation Turbine Fuel (ATF) price hike at 25%, Air India group is reflecting this calibrated approach, transitioning from a flat domestic surcharge to a distance-based grid," the airline said. Under the revised structure, the surcharge will range from Rs 299 per passenger for flights up to 500 km to Rs 899 for flights above 2,000 km. For international routes, the airline said the changes will be more substantial due to the absence of similar fuel price caps. "At the same time, in the absence of any such mitigations on international ATF prices, the Air India group will be implementing more significant changes to fuel surcharges," it said. Despite the revision, the airline said the surcharge still does not fully cover the increase in fuel costs. "The fuel surcharges on international routes do not compensate for the exponential increase in jet fuel prices for international flights. Air India continues to absorb a significant portion of this increased cost," the statement added. Meanwhile, the airline's Chief Executive Officer Campbell Wilson informed employees that he has decided to step down from the role after overseeing a major transformation of the airline over the past four years. "With a brief window until bulk deliveries from the nearly 600-strong aircraft orderbook commence in earnest from 2027, the time is right for me to hand over the reins for the next phase of Air India's rise," Wilson said in an internal message. He added, "I have informed the Board of my resignation, albeit with a commitment to remain in the role until a smooth transition can be effected." Reflecting on the airline's transformation since its return to the Tata Sons group, Wilson said employees had played a crucial role in driving change. "The four years since Air India's privatisation have seen tremendous change and progress... including the acquisition and successful merger of four airlines, modernization of systems and the addition of more than 100 aircraft to the fleet," he said. "It has been a true honour to play a small part in this latest chapter of Air India's long history," Wilson added. (ANI)
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