Flying with IndiGo will prove costly from March 14 onwards as the airline on Friday announced a fuel surcharge from Rs 425 to Rs 2300 for its domestic and international flights amid the ongoing conflict in West Asia, which has skyrocketed the crude oil prices as high as USD 100 per barrel. With this, IndiGo became the second Indian airline to announce a fuel charge after Air India.
The additional charge will come into effect at 00.01 hours on March 14, the airline said.
In a press release, IndiGo said the decision follows a sharp rise in fuel prices linked to the current geopolitical tensions in the Middle East. The airline cited the International Air Transport Association Jet Fuel Monitor, which has recorded an increase of more than 85 per cent in fuel
prices in the region.
The airline said Aviation Turbine Fuel accounts for a significant share of operating costs for airlines. It added that the sudden and steep rise in fuel prices will have a material impact on the costs and network of airlines, including IndiGo, and that fully offsetting the increase would require a substantial adjustment in fares.
IndiGo said it has introduced a relatively small fuel surcharge instead of fully passing on the impact of rising fuel costs to passengers.
"While offsetting the entire impact of this fuel price surge requires a very substantial adjustment to fares, IndiGo has introduced a relatively smaller amount as a fuel charge, keeping in mind the consequential burden on customers," the airline said.