GUWAHATI: In a fresh blow to air travellers, IndiGo will reintroduce a fuel surcharge on domestic and international flights from 12:01 AM on October 6, amid a sharp rise in aviation fuel prices linked to ongoing geopolitical tensions in West Asia.
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The airline, which accounts for nearly two-thirds of India’s domestic air traffic, said the surcharge will vary depending on the route and sector.
For domestic flights, IndiGo will charge ₹425 for routes below 500 km, ₹600 for routes between 501 and 1,000 km, ₹900 for routes between 1,001 and 1,500 km, ₹1,150 for routes between 1,501 and 2,000 km, and ₹1,300 for routes above 2,000 km.
The airline said the continuous rise in fuel prices, with the latest month-on-month increase exceeding 14%, has pushed Aviation Turbine Fuel (ATF) costs to among their highest levels in the last decade.
“Given that Aviation Turbine Fuel (ATF) makes up a significant share of airlines' operating costs, this rise is expected to impact airlines' cost structures and network economics, including those of IndiGo,” the airline said.
IndiGo said it had “marginally re-calibrated” its fuel charges across domestic and international flights in view of the situation. The revised charges will apply to all new bookings made from 12:01 AM on October 6.
ATF accounts for up to 40% of an airline’s operating costs and has become more expensive again amid renewed tensions in West Asia. Domestic ATF prices fell from ₹115 per litre in June to ₹110 in July, before rising to ₹115 in August and ₹121 on September 1.
The price was further increased to ₹137 per litre for domestic airlines from October 1.
Airlines including Air India, IndiGo and Akasa had introduced fuel surcharges in March after global ATF prices rose amid escalating tensions in West Asia. The charges were later reduced around July as fuel prices stabilised.
With tensions again intensifying in the region, energy prices, including crude oil, LNG and ATF, have witnessed another sharp rise, prompting airlines to reassess their fuel-related charges.
