Indian airlines are considering withdrawing the fuel surcharge introduced earlier this year as crude oil and jet fuel prices ease, potentially offering relief to passengers in the coming months, sources told NDTV Profit.
According to people familiar with the discussions, 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 move comes after a sharp moderation in global crude oil prices and aviation turbine fuel (ATF) prices from their recent highs. While international jet fuel prices have declined significantly, airline executives believe fuel costs remain elevated compared with historical averages and are assessing whether the recent softening is sustainable before taking a final call.
Industry sources said carriers are currently in a wait-and-watch mode, weighing whether to remove the surcharge entirely or opt for a calibrated, phased withdrawal that balances passenger affordability with profitability.
Domestic routes are likely to see the surcharge withdrawn before international sectors, where fuel costs and operating economics remain relatively more challenging, the sources said.
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Air India, IndiGo and Akasa Air had introduced fuel surcharges in March after a sharp increase in crude oil and aviation fuel prices pushed up operating costs. The additional levy was aimed at offsetting the impact of higher fuel expenses without significantly altering base fares.
With fuel prices easing, airlines are now holding discussions on the timing and extent of a rollback. However, executives remain cautious about acting too quickly, given the volatility in global energy markets and the possibility of fresh geopolitical disruptions affecting crude prices.
According to sources, industry-wide discussions are underway on a phased removal of the surcharge to ensure ticket prices become more competitive while allowing airlines to protect margins after a period of elevated fuel costs.
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