New Delhi: IndiGo has raised fuel charges for both domestic and international flights due to a significant surge of over 14% in Aviation Turbine Fuel (ATF) prices within a month. The airline stated that ATF costs have hit a ten-year peak, leading to increased operational expenses. For domestic flights, the new fuel charges will vary from Rs 375 to Rs 1,300 per sector, based on the distance traveled.
IndiGo Flight Ticket Price Hike
This represents an increase from the previous range of Rs 275 to Rs 950 in April. IndiGo mentioned that it plans to monitor the situation closely and make necessary adjustments as needed. The airline operates more than 2,200 flights daily.
Inter Globe Aviation, the parent company of IndiGo, saw its shares trading at Rs 4,930 on BSE around 2:00 pm on October 5, marking a 0.18% rise from the previous closing price. To mitigate the impact of the fuel cost escalation, IndiGo mentioned that a more substantial increase in charges would be required, but to lessen the burden on customers, the company opted for a slight and controlled adjustment.
Jet fuel constitutes up to 40% of airlines’ operational costs, and sudden price fluctuations could affect their profitability, as per information from Reuters. IndiGo reported a loss of 3.82 billion rupees in the first quarter and expressed intentions in May to explore hedging fuel prices for margin protection.
For international flights, the revised fuel charges are as follows:
– SAARC, up to 500 km: Rs 1,000
– SAARC, over 501 km: Rs 3,000
– South-East Asia: Rs 5,500
– GCC and Middle East: Rs 5,500
– North and East Asia: Rs 5,500
– Africa: Rs 6,000
– Europe: Rs 10,000
The increase in the price of aviation fuel (ATF) by Rs 16 per litre has increased the cost of travel for airlines. As a result, IndiGo has increased the fuel surcharge on new bookings made from October 6. For domestic flights, an additional charge of Rs 375 to Rs 1,300 will be levied depending on the distance. This is the third price hike in the last six months, which is a continuous increase in the cost of air travel. This is likely to affect the budget of passengers travelling by air, especially during the festive season.