Air India has lowered fuel surcharges on certain international routes, marking the first such move by an Indian carrier as global jet fuel costs moderate, according to industry sources.

The carrier cut the surcharge per passenger to 125 dollars on Europe flights from 205 dollars set in April. Charges for North America and Australia routes dropped to 200 dollars from 280 dollars.

No other Indian airline has introduced comparable reductions to date.

The adjustment follows a steep rise in global jet fuel prices earlier this year that raised airline operating expenses sharply.

Worldwide average jet fuel prices reached 195.19 dollars per barrel in the week ending March 27, 2026, nearly double the 99.40 dollars recorded at the end of February.

Aviation Turbine Fuel, refined from crude oil, also saw refinery margins, known as the crack spread, increase markedly.

The crack spread rose almost threefold in three weeks, moving from 27.83 dollars per barrel at the end of February to 81.44 dollars by March 27.

Higher crude prices combined with wider refinery margins created difficult fuel cost conditions for carriers worldwide.

As international jet fuel prices have eased from their March high, Air India has shared some savings with passengers on long-haul routes.

The change should make journeys to Europe, North America and Australia modestly less expensive.

Industry observers will monitor whether other Indian airlines follow with similar surcharge reductions on international services.

Credit:
https://www.republicworld.com/business/air-india-cuts-fuel-surcharge-on-select-international-routes-as-global-jet-fuel-prices-ease-sources-2026-07-03-131136
BCN