IndiGo Flight Ticket Price Hike: Air travel is set to become more expensive as IndiGo has increased its fuel charges on both domestic and international flights. The airline has taken the step following a sharp rise of more than 14% in Aviation Turbine Fuel (ATF) prices within a month.
IndiGo said the cost of aviation fuel has reached its highest level in around a decade, putting additional pressure on airline operating expenses. The revised fuel charge for domestic flights will range from ₹375 to ₹1,300 per sector, depending on the distance of the journey.
Domestic Flight Fuel Charges Increased
The latest charges are higher than the earlier range of ₹275 to ₹950, which was applicable in April. IndiGo said it will continue to monitor fuel prices and make further changes if required.
The airline currently operates more than 2,200 flights every day. With ATF accounting for a significant portion of airline operating costs, changes in fuel prices have a direct impact on the cost of air travel.
InterGlobe Aviation, the parent company of IndiGo, was trading at around ₹4,930 on the BSE at about 2 PM on October 5, representing a 0.18% increase compared with its previous closing price.
New Fuel Charges for International Flights
IndiGo has also revised fuel charges on international routes. The new charges vary according to the destination and distance.
- SAARC, up to 500 km: ₹1,000
- SAARC, above 501 km: ₹3,000
- South-East Asia: ₹5,500
- GCC and Middle East: ₹5,500
- North and East Asia: ₹5,500
- Africa: ₹6,000
- Europe: ₹10,000
The revised charges will apply to new bookings made from October 6.
ATF Price Rise Adds Pressure on Airfares
The price of Aviation Turbine Fuel has increased by ₹16 per litre, adding to the operating expenses of airlines. Jet fuel can account for as much as 40% of an airline’s operating costs, making sudden price movements an important factor for the industry.
IndiGo reported a loss of ₹3.82 billion in the first quarter and had indicated in May that it was considering fuel-price hedging as a way to protect its margins.
The airline said that the increase in fuel charges could have been higher given the rise in fuel costs. However, it opted for a controlled increase in an effort to limit the additional burden on passengers.
This is the third increase in six months, adding to the cost of air travel. The latest revision could have a greater impact on passengers travelling during the festive season, when demand for flights is generally closely watched.
Disclaimer: This article is intended for general informational purposes and is based on the details provided in the source material. Airfares and fuel charges can change depending on airline policies, route, booking date, fuel prices, taxes and other applicable charges. Passengers should check the final fare and applicable charges on the airline’s official booking platform before making a travel decision.