New Delhi: Indian airlines are considering withdrawing the fuel surcharge introduced earlier this year as global crude oil prices continue to ease, a move that could make air travel cheaper for passengers in the coming months, according to a report.
A report by NDTV Profit said airlines are actively reviewing the surcharge and are expected to take a decision by the end of the second quarter or in the early part of the third quarter.
The review follows a sharp decline in international crude oil prices from recent highs. While fuel costs have moderated significantly, airline executives are closely monitoring market trends before making a final decision, citing the continued volatility in global energy markets.
According to the report, airlines are weighing two options — removing the surcharge entirely or implementing a phased rollback that balances lower fares for passengers with the industry’s profitability.
Sources indicated that domestic flights are likely to see the surcharge withdrawn before international routes, where fuel costs and operational expenses remain comparatively higher.
Leading carriers, including Air India, IndiGo and Akasa Air, introduced the fuel surcharge in March after a surge in crude oil and aviation turbine fuel (ATF) prices significantly increased operating costs. The additional charge helped airlines offset rising fuel expenses without substantially increasing base airfares.
With fuel prices now softening, airlines have begun internal discussions on the timing and extent of the rollback. Industry players are also exploring a calibrated withdrawal strategy to make air travel more affordable while maintaining financial stability after a period of elevated fuel costs.
With inputs from IANS