IntroductionAir India and Air India Express will implement fuel surcharges starting March 12, which will increase costs on routes to the Middle East and India.
Event Overview
Air India has announced a fuel surcharge effective March 12: ₹399 per person for domestic flights and SAARC routes, and $10 per person for Middle East/West Asia routes. This surcharge applies only to newly booked flights and will later be extended to long-haul routes to Europe and the Americas.
Impact Analysis
- Air freight costs between India and the Middle East are rising.
- Fuel surcharges may prompt competitors to follow suit.
- Price volatility increases the difficulty of quoting prices
CZL Recommendation
- Recent shipments have involved pre-locking in cargo space and prices.
- Middle Eastern customers can evaluate more stable dedicated lines or alternative routes.
Reference source:
- https://www.airindia.com/in/en/newsroom/press-release/Important-Update-Phased-implementation-of-fuel-surcharge.html
- https://www.livemint.com/companies/news/air-india-to-levy-fuel-surcharge-full-region-wise-price-hike-list-and-implementation-timeline-11773189607895.html