New Delhi: The country’s largest airline IndiGo on Monday announced a hike in fuel surcharge for domestic and international flights in the wake of rising jet fuel prices.
The revised charges will be effective from October 6, and the move will push airfares higher.
The quantum of the hike ranges from Rs 100 to Rs 350 for domestic flights depending on distance. The hike in surcharge has also been effected for international flights.
This is the second time since April that the carrier has increased the fuel surcharge, which was introduced in March.
The fuel surcharge will be Rs 375 for routes with distance up to 500 kilometres and Rs 600 for flights having distance between 501 and 1,000 kilometres.
The amount will be Rs 900 for routes with a distance of 1,001 to 1,500 kilometres and Rs 1,150 for a distance of 1,501 to 2,000 kilometres.
The statement said the fuel surcharge will be Rs 1,300 for flights having a distance of more than 2,000 kilometres.
For SAARC region flights, the fuel surcharge varies from Rs 1,000 to Rs 3,000 and Rs 6,000 for Africa flights and Rs 10,000 for Europe services.
The fuel surcharge will be Rs 5,500 for flights to Southeast Asia, GCC and the Middle East, and North and East Asia, as per the statement.
Jet fuel accounts for around 40 per cent of an airline’s operating costs.
IndiGo said ATF prices have remained volatile in recent months, especially following the geopolitical situation in the Middle East.
According to the airline, the continuous rise in fuel prices, with the latest month-on-month increase exceeding 14 per cent, has taken ATF costs to levels that are amongst the highest in the last decade.
“Given that Aviation Turbine Fuel (ATF) makes up a significant share of the airline’s operating costs, this rise is expected to impact airlines’ cost structures and network economics, including those of IndiGo,” it said in a statement on Monday.
In view of the situation, the airline said it has marginally recalibrated its fuel charges across its domestic and international flights.
While offsetting the increase in fuel costs would have required a significantly larger increase in fuel charges, a measured and relatively modest adjustment to minimise the impact on customers has been made, the airline said.
Regretting the additional burden the revised fuel charges would have on travellers, the airline said the decision reflects the sustained increase in operating costs and evolving market environment.
The airline also said it would continue to monitor the situation and make relevant adjustments as and when appropriate.
IndiGo operates over 2,200 flights daily.
On October 1, ATF prices were hiked by a steep Rs 16 to Rs 137 per litre from Rs 121 for domestic airlines. The revision came after the jet fuel prices were raised by Rs 6.28 per litre, or 5.46 per cent, in September, following a Rs 5 per litre increase in August.
In April, Air India announced revisions to fuel surcharges while Akasa Air started levying a fuel surcharge from March 15 amid the spike in ATF prices.
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