Air India Cuts Fuel Surcharge On Europe, US & Australia Routes As Jet Fuel Prices Ease

Air India has reduced fuel surcharges on select long-haul international routes following a moderation in global jet fuel prices, becoming the first Indian airline to lower the additional levy amid easing fuel costs, according to sources.

Lower surcharge for Europe, North America and Australia

Air India has reduced the fuel surcharge per passenger on flights to Europe to USD 125 from USD 205 in April. For flights to North America and Australia, the surcharge has been lowered to USD 200 from USD 280.

According to sources, no other Indian airline has announced a similar reduction in fuel surcharge on international routes so far.

The reduction is expected to make travel to Europe, North America and Australia slightly more affordable for passengers, particularly on long-haul international flights.

Fuel costs had surged sharply earlier this year

The airline's decision follows a period of steep increases in global jet fuel prices earlier this year that significantly raised operating costs for airlines worldwide.

The global average jet fuel price climbed to USD 195.19 per barrel for the week ending March 27, 2026, nearly doubling from USD 99.40 per barrel at the end of February—an increase of almost 100 per cent.

At the same time, Aviation Turbine Fuel (ATF), produced by refining crude oil, saw a sharp rise in refinery margins, commonly referred to as the crack spread.

The crack spread nearly tripled within three weeks, increasing from USD 27.83 per barrel for the week ending February 27 to USD 81.44 per barrel for the week ending March 27.

The simultaneous rise in crude oil prices and refinery margins created one of the most challenging fuel cost environments for airlines globally in recent years.

Industry likely to watch Air India's move

With international jet fuel prices now moderating from their March peak, Air India has passed on part of the savings to passengers travelling on long-haul international routes.

The airline's decision is expected to be closely watched across the aviation industry, as no other Indian carrier has yet announced a similar reduction in fuel surcharges for international flights.

Air India's move is expected to make long-haul travel slightly more affordable while the broader aviation sector continues to navigate fluctuations in global energy prices.

(With inputs from ANI)