New Delhi — Indian airlines are considering withdrawing fuel surcharges as crude oil prices decline, potentially lowering ticket costs for passengers in the coming months, according to a report.
Airlines are evaluating whether to roll back the additional charge, with a decision expected by the end of the second quarter or early in the third quarter, NDTV Profit reported.
The review follows a significant drop in global crude oil prices from recent highs. Although fuel costs have eased, airline executives are assessing whether the decline will persist before making a final decision because energy markets remain volatile.
Carriers are reportedly considering either eliminating the surcharge entirely or withdrawing it in stages to balance passenger affordability with profitability.
Fuel surcharges are likely to be removed from domestic routes before international services, where fuel expenses and other operating costs remain comparatively higher, according to the report.
Major carriers, including Air India, IndiGo and Akasa Air, introduced fuel surcharges in March after increases in crude oil and aviation turbine fuel prices raised operating costs.
The additional levy allowed airlines to recover part of the higher fuel expenses without making substantial changes to their base fares.
With fuel prices now declining, airlines have begun internal discussions about the timing and scale of a rollback.
Industrywide discussions are also focused on a calibrated withdrawal that could make air travel more competitive while protecting airline profitability following a period of elevated fuel costs. (Source: IANS)
