IndiGo Increases Fuel Surcharge on Domestic and International Flights Amid Rising ATF Costs

IndiGo Adjusts Fuel Charges Amid Rising Aviation Turbine Fuel Prices

India's largest airline, IndiGo, announced a revision in fuel charges for both domestic and international routes on Wednesday, citing a sharp rise in aviation turbine fuel (ATF) prices. The revised charges will apply to all new bookings made from April 2.

The airline said fuel charges have been recalibrated based on distance slabs for domestic operations. Passengers on shorter routes of up to 500 km will pay Rs 275 per sector, while those traveling over 2,000 km will be charged Rs 950. Other slabs include Rs 400 for 501-1,000 km, Rs 600 for 1,001-1,500 km, and Rs 800 for 1,501-2,000 km.

In contrast, international routes will see revised fuel charges varying by region and distance, ranging from Rs 900 for short-haul routes within the Indian subcontinent to as high as Rs 10,000 for flights to the UK and Europe.

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The airline said it has passed on only a portion of the additional fuel costs to passengers to minimize the burden. Despite the increase, IndiGo reiterated its commitment to maintaining affordable and reliable air travel.

The move comes amid a steep increase in fuel costs, with data indicating over a 130% month-on-month rise in jet fuel prices in the region. ATF prices for domestic airlines were raised by a calibrated 8.5% on Wednesday, instead of more than doubling as warranted by a war-driven surge in global oil prices.

The revised ATF prices will have a significant impact on airlines, which are already burning more fuel in taking longer routes for flying to Western destinations due to the war. Fuel makes up around 40% of an airline's operating cost.

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The government's decision to allow only a partial and staggered 25% increase in ATF prices for domestic operations has helped limit the impact on fares. The move is seen as a pragmatic approach to shield passengers from sharp fare increases and ease the burden on domestic airlines.

The ATF price rise is likely to further strain airlines, which are already struggling to maintain profitability. The industry is closely watching the situation, and IndiGo has said it will continue to monitor the situation and make further adjustments if required.