IndiGo tickets set to become more expensive. Check details here | Mint
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Business News/ Companies / News/  IndiGo tickets set to become more expensive. Check details here
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IndiGo tickets set to become more expensive. Check details here

Passengers booking IndiGo flights will incur a fuel charge based on sector distance.

FILE PHOTO: An IndiGo airlines passenger aircraft taxis on the tarmac at Chhatrapati Shivaji International airport in Mumbai, India, May 29, 2023. REUTERS/Francis Mascarenhas/File Photo (REUTERS)Premium
FILE PHOTO: An IndiGo airlines passenger aircraft taxis on the tarmac at Chhatrapati Shivaji International airport in Mumbai, India, May 29, 2023. REUTERS/Francis Mascarenhas/File Photo (REUTERS)

Budget carrier IndiGo on Thursday said it will introduce a fuel charge on domestic and international routes, starting October 6. The charges will depend on the distance in respective sectors, the company said, adding that the move comes amid significant increase in jet fuel prices.

IndiGo on Thursday introduced fuel charge to offset rising ATF prices on domestic and international routes, effective 00:01hrs October 06, 2023. “The decision follows the significant increase in Aviation Turbine Fuel (ATF) prices, which have surged in the last three months with consecutive price hikes every month. ATF accounts for a substantial portion of an airline's operating expenses, necessitating fare adjustment to address such a cost surge.," IndiGo said in a staement.

Under this pricing structure, passengers booking IndiGo flights will incur a fuel charge, per sector, based on the sector distance.

Sector Distance (in km) Fuel Charge

              0-500                          300

             501-1000                   400

            1001-1500                 550

             1501- 2500                 650

             2501 – 3500             800

             3501 and above       1000

 

Under this pricing structure, passengers booking IndiGo flights will incur a fuel charge per sector based on the distance, the airline stated.The charges will depend on the distance in respective sectors, the company said, adding that the move comes amid significant increase in jet fuel prices.

Aviation Turbine Fuel (ATF) prices have surged in the last three months with consecutive price hikes every month, the airline said.

ATF accounts for a substantial portion of an airline's operating expenses, necessitating fare adjustment to address such cost surge, IndiGo said.

IndiGo said it will also publish the tariff sheet subsequently, with the sector-wise charges on its website.

Aviation turbine fuel (ATF) price was increased by 5,779.84 per kilolitre, or 5.1 per cent, in the national capital to 118,199.17 per kl from 112,419.33, according to a price notification of state-owned fuel retailers.

The increase comes on back of the steepest-ever 14.1 per cent increase ( 13,911.07 per kl) effected on September 1, and a 8.5 per cent or 7,728.38 per kl increase on August 1.

The fourth straight increase in prices of jet fuel, which makes up for 40 per cent of an airline's operating cost, will increase the burden on already financially strained airlines.

On July 1, ATF price had gone up by 1.65 per cent or 1,476.79 per kl. In four increases, ATF prices have gone up by a record 29,391.08 per kl.

Alongside, oil firms raised the price of commercial LPG - the one used in establishments such as hotels and restaurants - by 209.

*With Agency Inputs

 

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Published: 05 Oct 2023, 07:42 PM IST
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