Budget airlines lose edge as fuel surcharges come into play

Image for representation | Photo Credit: FRANCIS MASCARENHAS

With domestic airlines imposing fuel surcharges following a hike in aviation turbine fuel (ATF) prices, the fare gap between Indian and foreign carriers on many international routes has narrowed significantly, making foreign full-service airlines a more attractive option for passengers. On popular West Asian routes, the difference in fares between Indian budget carriers and foreign full-service airlines has narrowed to around ₹1,000–2,000. The marginal price difference is prompting passengers to consider foreign carriers, which offer better services and additional benefits than budget airlines.

For instance, tickets from Kochi to Dubai for travel on October 12 are priced between ₹23,549 and ₹38,108 on Indian budget carriers. On the same route and date, full-service carrier Etihad Airways is offering fares from ₹28,207. A similar trend is evident on the Dubai–Kochi sector, with the fare difference remaining marginal after Indian carriers introduced fuel surcharges to offset rising operating costs due to the fuel price hike. The surcharges vary from ₹1,300 to ₹5,500 across airlines, although fares may fluctuate considerably for last-minute bookings.