Air India cuts fuel surcharge on its North America, UK, EU & Australia by upto 39%
Air India has reduced fuel surcharges on long-haul flights to North America, the UK, Europe, and Australia following a decline in global crude oil prices. Meanwhile, its low-cost subsidiary, AI Express, has restored its full network connectivity across West Asia.
Why it matters
The reduction in surcharges reflects shifting global energy costs and provides relief to international travelers, while the network restoration signals operational recovery for the airline.
NEW DELHI: Air India is learnt to have reduced the fuel surcharge levied on its long hauls to North America, UK, Europe and Australia from this month, thanks to crude peice falling due to an iffy US-Iran ceasefire. AI's highest surcharge was $280 on North America and Australia routes, which leading travel agents say, has dropped to $200 now. The fuel cess for UK and Europe flights was $205, which has now been reduced to $125.Meanwhile, AI low cost arm AI Express Thursday said it has restored connectivity to all destinations across its West Asia network "The change in fuel surcharge for AI ultra long and long hauls has been visible starting July 1," said a leading travel agent. Comments have been sought from AI on the issue and are awaited.AI, the only Indian carriers which operates flights to North America and Australia, has been the worst impacted by closure of Pakistan airspace for over 14 months. Post a recent iffy ceasefire between US and Iran and the consequential slight fall in jet fuel prices and relative stabilization of the rupee for now, the Maharaja could have acted more aggressively in terms of restoring slashed long hauls had it not been for the Pakistan airspace issue.While AI made record losses last fiscal due to various reasons, the longer routes due to this issue have also played a significant role. Mounting losses have led parent Tata group to decide on slowing down AI expansion plans for now. The airline is first expected to get a new CEO as outgoing Campbell Wilson will be leaving shortly.AI Express restores West Asia flights:The LC said Thursday it has restored connectivity to all destinations across its West Asia network with the resumption of services to Salalah in Oman and Kuwait. Flights on the Kozhikode–Salalah route resume from July 2. Services between Kozhikode and Kuwait resume from July 3, while flights between Bengaluru and Kuwait begin from July 4, with frequencies increasing in phases over the coming days, AI Express said in a statement Thursday.Get the latest business news and top stories. Download the TOI App.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.
The report provides objective data on pricing changes and airline operations without taking a stance on the airline's management.
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