India’s aviation sector faces a fresh cost squeeze as airlines raise fuel surcharges

Indian airlines are adjusting fares as elevated aviation turbine fuel (ATF) prices put pressure on operating margins. Air India, Air India Express and Akasa Air introduced or increased fuel surcharges effective 9 October, following an earlier increase by IndiGo.

Business Standard reported that ATF typically accounts for around 40% of an Indian carrier’s operating costs. Akasa’s revised domestic surcharges range from ₹375 for flights up to 500 km to ₹1,150 for flights of 1,501 km and above. Its revised international surcharge includes ₹2,500 on specified routes connecting India with Gulf markets, Thailand and Vietnam.

Why it matters to the travel trade: Tour operators, corporate travel managers and consolidators should review fare assumptions, package quotations and ticketing deadlines. A fuel surcharge can alter the final price even when the underlying itinerary remains unchanged.

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