Airfares surge as aviation fuel prices spike amid West Asia conflict

CISF officials check passengers’ ID cards and tickets at the International Airport. FILE PIC/SATEJ SHINDE

Domestic and International fliers are feeling the pinch, as the price of aviation turbine fuel (ATF) has skyrocketed across the world due to the war in West Asia. ATF accounts for about 40 per cent of any airline's operational costs, and scarcity of the energy commodity, or an increase in its prices, results in a direct increase in airfare. Airlines such as Air India and Air India Express on Tuesday formally announced that they would carry out a phased expansion of fuel surcharge on all their routes.

‘Fliers are flexible'

Hari Ganapathy, co-founder of the travel agency Pickyourtrail, stated that geopolitical tensions had made fliers cautious, saying, "We've observed a 17-33 per cent increase in fares on India-Europe routes, while limited operational flights to Dubai have seen a 60 to 80 per cent surge." He added, "Restrictions and fare surge have not disrupted traveller sentiment. Fliers have become more flexible with their routes, plans, and costs. We have considered this and launched a real-time safe-travel advisory that tracks airspaces which are operational, which hundreds of travellers check before fixing on destinations."

An aeroplane approaching Chhatrapati Shivaji Maharaj International Airport as seen from Kurla on February 26. PIC/SHADAB KHAN

New costs

Air India announced a phased increase in costs, which comes into force at 1 am on Thursday. A statement from the airline read, "In India, this pressure is amplified by high excise duty and value-added tax on ATF in major metro cities such as Delhi and Mumbai, magnifying the cost of the impact and placing substantial strain on airline operating economics."

Passengers Speak

Pappu Ghosh, (surname changed), whose wife was travelling from Los Angeles to Mumbai on Wednesday
‘Ticket prices of various international carriers were very high, about Rs 4,40,000 for a single passenger. Fortunately, Air India was offering the same trip for R1,20,000, so we were happy. Though the fare is high, it is not as astronomical as the others'

Vipul Shah, travelling from Mumbai to Ahmedabad with a colleague
‘Our company paid around Rs 14,000 for two one-way tickets. This is double what it would normally cost us. It is a necessary charge as airlines need to be able to purchase fuel, but it does end up burning a hole in our pockets'

A woman passenger, flying from Delhi to Mumbai
‘I got a ticket for about Rs 9000, thrice the usual cost. Since this was an urgent work trip, I travelled on my own dime; usually, I would've never paid so much for a one-way trip'

Rs 14,000
Cost of Mumbai-Ahd tickets for two people on Wednesday