New Delhi

Air India has lowered fuel surcharges on flights to North America, Australia, Europe and the United Kingdom following a decline in global oil prices over the past few weeks, sources said on Thursday.

The revised surcharge, which came into effect on July 1, reduces the additional fuel levy on flights to North America and Australia from USD 280 to USD 200 per ticket. For services to Europe and the UK, the surcharge has been cut from USD 205 to USD 125.

The airline has not issued an official statement on the revision.

Fuel surcharges for other international routes as well as domestic flights remain unchanged.

Air India had introduced the additional fuel charges on April 7 after a sharp rise in global crude oil and aviation fuel prices triggered by tensions in West Asia. The revised rates became applicable on international flights from April 10.

At the time, the Air India Group—which includes Air India and Air India Express—announced fuel surcharges ranging between USD 24 and USD 280 on most international routes, while domestic passengers were levied an additional Rs 299 to Rs 899 depending on the route.

The airline had said the decision was driven by soaring operating costs caused by higher fuel prices and airspace restrictions. Following the government's move to cap the increase in domestic Aviation Turbine Fuel (ATF) prices at 25 per cent, the group also shifted from a flat domestic fuel surcharge to a distance-based pricing model.

Quoting data from the International Air Transport Association (IATA), Air India had noted in April that the average global jet fuel price had climbed to USD 195.19 per barrel in the week ending March 27, nearly doubling from USD 99.40 per barrel recorded at the end of February.

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Aviation turbine fuel remains one of the biggest cost components for airlines, accounting for nearly 40-45 per cent of overall operating expenses.