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NIFTY23,4060.33%
SENSEX74,3460.41%
BANKNIFTY54,1860.88%
NIFTY IT29,3845.57%
PHARMA24,0870.33%
AUTO26,0930.05%
FMCG48,1241.01%
METAL13,5350.17%
REALTY762.601.39%
ENERGY40,1970.02%

IndiGo to Implement Revised Fuel Charges on Domestic and International Flights

IndiGo, the country's largest airline, has announced that it will introduce revised fuel charges on domestic and international flights starting from April 2. The move follows the recent hike in jet fuel prices. The airline will levy fuel charges ranging from ₹275 to ₹10,000 on various flights.

The revised fuel charges come on the same day that the aviation turbine fuel (ATF) prices were revised, with the government deciding to partially hike the price by 25% for domestic flights. The airline has already been imposing fuel charges ranging from ₹425 to ₹2,300 on domestic and international flight tickets since March 14, when fuel prices surged due to the West Asia conflict.

The revised fuel charges for domestic flights will vary depending on the distance traveled, ranging from ₹275 to ₹950. For international flights, the fuel charges will range from ₹900 to ₹10,000, depending on the distance. The airline has recalibrated its domestic fuel charge to vary by different travel distances, according to a statement.

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The significant increase in ATF prices on international routes has driven a substantial impact on the airline's operating costs. The revised charges will be applicable from 0001 hours on April 2. While fully offsetting the fuel price increase would require substantial fare revisions, IndiGo has chosen to pass on a relatively smaller amount to customers, taking into account the consequential burden on them.

Fuel Charges (₹)Domestic FlightsInternational Flights
Minimum275900
Maximum95010,000
Current Charges (since March 14)425-2,300425-2,300

Investor Takeaway

Airfares may rise due to increased fuel charges.

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