Akasa Air implements fuel surcharge on flights amid US-Iran war
What's the story
Akasa Air has announced a fuel surcharge of ₹199-1,300 on domestic and international flights starting March 15. The move comes as the airline joins IndiGo and Air India in introducing similar measures. The decision is attributed to a surge in aviation turbine fuel (ATF) prices due to the ongoing Iran-US-Israel conflict in West Asia.
Surcharge specifics
Airline assures to review fuel surcharge periodically
The fuel surcharge will be levied per sector and will vary according to the flight duration. Akasa Air said it remains focused on offering warm and efficient customer service, reliable operations, and affordable fares while maintaining the highest standards of operational efficiency. The airline also assured that it would keep a close watch on the operating environment and review this fuel surcharge periodically.
Airline operations
Akasa Air's market share and operations
Akasa Air holds a 5% share in the Indian aviation market. The airline operates about two dozen domestic destinations and some international routes to the Middle East/West Asia region such as Kuwait, Doha, Jeddah, Riyadh, and Abu Dhabi. The move to introduce fuel surcharges comes as nearly all major Indian airlines have levied or increased fuel surcharges amid rising ATF prices due to geopolitical tensions.
Cost implications
Geopolitical tensions and impact on ATF prices
The global prices of ATF, which usually accounts for 40% of an airline's operating expenses, have seen a sharp increase since early March 2026. This is due to regional supply disruptions caused by the ongoing conflict. The rise in fuel prices impacts the cost of operations across the aviation industry as fuel is a major component of airline operating costs.