IndiGo has no choice but to raise fares amid rising fuel costs: CEO Willie Walsh

IndiGo CEO Willie Walsh has said the airline has “no choice” but to hike airfares as soaring fuel costs and rupee depreciation put pressure on its finances. The airline is looking to raise ticket prices to offset a sharp increase in its fuel bill, although Walsh said it would seek to minimise the hikes.

The development comes as India’s largest airline reported a loss of Rs 1,879 crore in the September quarter, despite a sharp rise in revenue. While IndiGo narrowed its losses compared with the year-ago period, mounting operating expenses continued to weigh on its profitability.

“We have no choice but to look to increase fares in an effort to offset the very significant increase that we have seen in the fuel bill,” Walsh said during a virtual media briefing on Thursday,



responding to a question on rising airfares and their impact on passenger demand.

However, Walsh said the airline would seek to minimise fare increases, pointing to IndiGo's low-fare model, which has helped drive growth in India’s aviation market.

"Obviously, we want to try and minimise the increase in fares that we are encountering. It has always been the case that India stimulates a lot of additional growth through the low fare that IndiGo has been able to offer in the market," he said.

The comments come amid rising fuel prices linked to the West Asia crisis and geopolitical uncertainties, which have increased operating costs for airlines. IndiGo and other carriers have also been levying fuel surcharges on tickets to offset the additional expenses.