After IndiGo, Air India and Akasa raise fuel costs amid ATF spike

The latest fuel price hike has further raised airline operating costs, with fuel continuing to account for a substantial share of overall airline expenditure.

Air India Group, on Thursday, announced that it would increase fuel surcharge across its domestic and select international routes in response to the continued increase in Aviation Turbine Fuel (ATF) prices.

“The revised fuel surcharge will be reflected in the fare applicable to new bookings made from 0000 Hrs IST on 9 October for Air India Express, and from 1100 hrs IST on 9 October for Air India. The surcharge varies by sector and route category,” the Air India spokesperson said.

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The latest increase in fuel prices has further elevated operating costs for airlines, with fuel continuing to account for a substantial proportion of overall airline expenditure, the spokesperson added.

This comes after the Federation of Indian Airlines (FIA), which represents Air India, IndiGo and SpiceJet, had, on September 25, written to the civil aviation ministry and sought a series of measures from the government to ease the financial pressure on domestic airlines amid the continuing West Asia conflict, higher aviation fuel prices, airspace restrictions and rupee depreciation.

The spokesperson said that Air India and Air India Express have undertaken a “calibrated revision” of fuel surcharges, with the adjustments intended to partially offset the increased cost burden while enabling the two airlines to continue providing reliable and high-quality services across their networks.

The revised fuel surcharge on domestic one-way sectors will be ₹400 for flights up to 500 km, ₹600 for 501–1,000 km, ₹850 for 1,001–1,500 km, and ₹1,200 for sectors of 1,501 km and above.

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The revised fuel surcharge on international one-way sectors will be USD 215 for North America, USD 210 for Australia, USD 135 for Europe including the UK and USD 55 for West Asia/Middle East.

Akasa Air, too, announced a revision in its fuel charge attributing to the sustained increase in ATF prices.

“The revised fuel surcharge will be applicable to all new bookings made with effect from 00:01 hrs on October 9, 2026 onwards. ATF constitutes a significant component of airline operating costs, and the continued increase in fuel prices has placed sustained pressure on airline operating costs across the industry. In view of the prevailing fuel price environment, Akasa Air has taken a measured approach to partially offset the impact,” its spokesperson said.

Akasa Air’s fuel surcharge on domestic routes will be ₹375 for sectors up to 500 km, ₹600 for 501–1,000 km, ₹900 for 1,001–1,500 km, and ₹1,150 for sectors of 1,501 km and above. On international routes, a fuel surcharge of ₹2,500 will apply on flights between India and Kuwait, Qatar, Saudi Arabia, the UAE, Thailand and Vietnam.

“Akasa Air will continue to monitor fuel prices and the broader operating environment and review the fuel surcharge periodically,” the spokesperson said.

IndiGo, the country's largest airline, also increased fuel charges on October 5 with effect from October 6.

Under the revised structure, fuel charges on domestic routes have been increased to ₹375 for flights up to 500 km, ₹600 for flights up to 1000km, ₹900 for flying between 1001 to 1500km, ₹1,150 for flights operating for a distance up to 2,000 km and ₹1,300 for flights beyond 2,000 km.

For international flights, the charges are fixed at ₹1,000 for SAARC routes up to 500 km and ₹3,000 for those beyond 500 km. Flights to Southeast Asia, the Gulf and Middle East countries and North and East Asia will have a charge of ₹5,500. The fuel charge for Africa will be ₹6,000 and ₹10,000 for Europe.

Neha LM Tripathi is a Special Correspondent with the National Political Bureau of Hindustan Times. She covers the aviation and railways ministries, and also writes on travel trends. Her work spans national developments, with a focus on policy, people, and the evolving travel landscape. She has 13 years of experience. Before moving to Delhi, she was based in Mumbai, where she began her journey as a journalist. Outside the newsroom, Neha enjoys trekking and travelling.Read More