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IndiGo Hikes Fuel Surcharge as ATF Costs Rise

The revised charges will take effect from October 6.

New Delhi:The country’s largest airline, IndiGo, on Monday announced an increase in fuel surcharge on domestic and international flights following a rise in aviation turbine fuel prices, a move that will make air travel costlier.

The revised charges will take effect from October 6.

The increase ranges from Rs 100 to Rs 350 on domestic flights, depending on the distance travelled. The surcharge has also been raised on international flights.

This is the second increase since April in the fuel surcharge, which was introduced in March.

The surcharge will be Rs 375 for routes of up to 500 km, Rs 600 for distances between 501 km and 1,000 km, Rs 900 for 1,001 km to 1,500 km and Rs 1,150 for 1,501 km to 2,000 km. It will be Rs 1,300 for flights covering more than 2,000 km.

For flights to the SAARC region, the fuel surcharge will range from Rs 1,000 to Rs 3,000. It will be Rs 6,000 for flights to Africa and Rs 10,000 for European services.

Flights to Southeast Asia, the GCC and Middle East, and North and East Asia will attract a surcharge of Rs 5,500.

IndiGo said ATF prices had remained volatile in recent months, particularly because of the geopolitical situation in the Middle East.

According to the airline, the sustained increase in fuel prices, including a latest month-on-month rise of more than 14 per cent, had pushed ATF costs to among their highest levels in the past decade.

“Given that Aviation Turbine Fuel (ATF) makes up a significant share of the airline’s operating costs, this rise is expected to impact airlines’ cost structures and network economics, including those of IndiGo,” it said.

The airline said it had, therefore, marginally recalibrated its fuel charges across domestic and international flights.

It said fully offsetting the increase in fuel costs would have required a substantially larger hike, but it had opted for a measured adjustment to minimise the impact on customers.

Regretting the additional burden on travellers, IndiGo said the decision reflected the sustained rise in operating costs and the evolving market environment.

The airline said it would continue to monitor the situation and make further adjustments when necessary. IndiGo operates more than 2,200 flights daily.

( Source : Deccan Chronicle )
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