IndiGo, India’s largest airline, has announced an increase in fuel charges on domestic and international flights from October 6, citing a sharp rise in aviation turbine fuel (ATF) prices.
The airline announced the revised charges on October 5, saying they will apply to all new bookings made from October 6. IndiGo said ATF prices have risen by more than 14% month-on-month, taking fuel costs to among their highest levels in the past decade.
“Continuous rise in fuel prices, with the latest month-on-month increase exceeding 14%, has taken ATF costs to levels that are amongst the highest in the last decade,” the airline said.
Under the revised structure, passengers will have to pay an additional fuel charge based on the distance of their journey:
Up to 500 km: ₹375
501–1,000 km: ₹600
1,001–1,500 km: ₹900
1,501–2,000 km: ₹1,150
Above 2,000 km: ₹1,300
The revised fuel charges will apply to new bookings for both domestic and international flights.
IndiGo said fuel forms a significant part of an airline’s operating expenses and that the increase in ATF prices is expected to put pressure on its cost structure and network economics.The move comes amid volatility in global crude oil prices linked to the ongoing conflict involving Iran. Higher crude prices generally push up ATF costs, increasing pressure on airline operating margins and passenger fares.
With the new charges, passengers booking longer flights will face a higher additional fee, with the maximum fuel charge of ₹1,300 applicable to journeys exceeding 2,000 km.