Flying abroad gets cheaper as Air India slashes fuel surcharges

Air India reduced fuel surcharges on specific international routes on Wednesday as global jet fuel prices eased.The airline has reduced the fuel surcharge per passenger from $205 to $125 for flights to Europe, while it has been cut by $80, to $200, for NorthAmerica and Australia, making travel to these regions more affordable, ANI reported.According to sources quoted by PTI, the revised fuel surcharges are effective from July 1Earlier, the global jet fuel prices had experienced a steep elevation, almost doubling to $195.19 per barrel by the end of March, from $99.40 at theend of February, according to the International Air Transport Association (IATA). The airline announced fuel surcharges on April 7.Aviation Turbine Fuel (ATF), produced by refining crude oil, also witnessed a sharp increase in refinery margins, nearly tripling within threeweeks of February and March, from $27.83 to $81.44 per barrel.According to PTI, ATF accounts for almost 40-45 per cent of an airline's total cost.The surge in crude oil prices, along with elevated refinery margins, pushed jet fuel costs to some of their highest levels in recent years, significantly increasing operating expenses for airlines worldwide.However, with international jet fuel prices now easing from their March peak, Air India has lowered fuel surcharges on select long-haul international routes, passing on a portion of the savings to passengers.According to ANI, the airline's decision will be closely watched by the aviation industry, as there have been no such announcements by other Indian carriers.