India’s largest airline, IndiGo, on Wednesday announced a revision in fuel surcharges, ranging from Rs 275 to Rs 10,000, a move likely to push up airfares across several domestic and international routes amid rising jet fuel prices.
The announcement coincided with a revision in Aviation Turbine Fuel (ATF) prices. The government opted for a partial increase of 25 per cent on domestic flights, aiming to balance operational costs for airlines and affordability for passengers.
Since March 14, IndiGo has applied fuel surcharges between Rs 425 and Rs 2,300 on tickets due to escalating fuel costs linked to the West Asia conflict. The airline noted that fully passing on the increased fuel expenses would require much higher fare hikes, but it has limited the surcharge to reduce the impact on travellers.
International Air Transport Association's (IATA) Jet Fuel Monitor indicates an over
130% increase in fuel prices in the region on a month-on-month basis. However, in support of air travellers and the aviation industry, the Ministry of Petroleum and Natural Gas (MoPNG) and the Ministry of Civil Aviation (MoCA) have decided to pass on only a partial, staggered increase of 25% to airlines for domestic operations. With this clarity, IndiGo has recalibrated its domestic fuel charge to vary by travel distance.
From April 2, the revised fuel charges for domestic flights will range from Rs 275 to Rs 950, based on flight distance. International flight surcharges will vary between Rs 900 and Rs 10,000, also depending on the route length.
For domestic sectors, the fuel surcharge will be Rs 275 for flights up to 500 km, Rs 400 for 501-1,000 km, Rs 600 for 1,001-1,500 km, Rs 800 for 1,501-2,000 km, and Rs 950 for distances beyond 2,000 km. Previously, IndiGo applied a flat fuel charge on domestic flights.