Airfares could get cheaper as airlines weigh fuel surcharge rollback

Indian airlines are considering withdrawing the fuel surcharge as crude oil prices moderate, which could provide relief to air travellers in the coming months, according to a report.

NDTV Profit has reported that airlines are actively evaluating a rollback of the surcharge, with a decision likely by the end of the second quarter or early in the third quarter.

The review comes amid a sharp decline in global crude oil from recent highs.

While fuel costs have eased considerably, airline executives are assessing whether the trend is sustainable before taking a final decision, given the volatility in global energy markets.

The report further highlighted that carriers are currently adopting a wait-and-watch approach and are discussing whether to remove the surcharge completely or opt for a phased withdrawal that balances passenger affordability with profitability.

Moreover, domestic routes are expected to see the surcharge removed ahead of international services, where fuel expenses and operating economics remain relatively more challenging, according to the sources.

Major carriers -- including Air India, IndiGo and Akasa Air -- had introduced fuel surcharges in March after a surge in crude oil and ATF prices significantly increased operating costs.

The additional levy was aimed at offsetting higher fuel expenses without making substantial changes to base ticket fares.

With fuel prices now easing, airlines have begun internal discussions on the timing and extent of a rollback.

Additionally, the report indicated that discussions are underway across the industry on a calibrated withdrawal of the surcharge to make air travel more competitive while safeguarding profitability after a period of elevated fuel costs.

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