Air India Slashes Fuel Costs with New Distance-Based Grid

Air India will transition from flat fees to a distance-based grid for domestic flights and implement sharp increases for international flights from April 8.| Business News

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Air India has revised its fuel surcharge math for domestic and international flights in response to the volatile energy market. The carrier will transition to a distance-based grid for domestic flights and increase fuel surcharges for long-haul travel.

The move follows a significant spike in global jet fuel prices, which have nearly doubled in a single month. Air India has described the current landscape as one of the most challenging fuel cost environments airlines have faced in years.

For domestic flights, Air India will charge between ₹299 for short hauls under 500 km to ₹899 for routes exceeding 2,000 km. International routes will face steeper levies, with fuel surcharges reaching $280 per passenger per sector for North America and Australia.

The airline will review the fuel surcharges periodically and has stated that it will continue to absorb a significant portion of the costs.