Breakdown of IndiGo fuel surcharge: Rs 300 for fights up to 500 km, Rs 1000 for flights Over 3500 km

IndiGo Airlines announced that starting October 6, it will implement a fuel surcharge ranging from Rs 300 to Rs 1000 on airfares due to the rise in jet fuel prices. IndiGo (InterGlobe Aviation Limited) is India's largest airline in terms of passengers carried and fleet size, with a domestic market share of 63.4% as of July 2023.

The fuel surcharge will be applied to airfares booked on or after October 6.

What

IndiGo on Thursday (October 5) said that that they are introducing the fuel charge ranging from Rs 300 to Rs 1000 to offset the increasing prices of aviation turbine fuel (ATF).

They further explained, "This decision comes in response to the significant increase in aviation turbine fuel (ATF) prices, which have seen consecutive price hikes every month over the last three months." Given that jet fuel constitutes a substantial portion of the airline's operating expenses, the fuel surcharge became necessary.

According to IndiGo's statement, "Under this pricing structure, passengers booking IndiGo flights will incur a fuel charge per sector, based on the sector distance." As a result, ATF prices account for 40% of the IndiGo ticket price.

Here is a breakdown of sector distances and the corresponding fuel charges:

Sector distance up to 500 km: Rs 300
501-1000 km: Rs 400
1001-1500 km: Rs 550
1501-2500 km: Rs 650
2501-3500 km: Rs 800
Sector distance of 3501 km and above: Rs 1000

ATF fuel prices increased

ATF fuel prices have risen recently. Earlier this week, oil marketing companies (OMCs) increased ATF prices by approximately 5% in four metro cities, including New Delhi, Kolkata, Mumbai, and Chennai.

As per the information provided by OMC Indian Oil Corporation (IOC), jet fuel now costs Rs 1,18,199.17 per kilolitre (kl) in Delhi, Rs 1,10,592.31 per kl in Mumbai, Rs 1,26,697.08 per kl in Kolkata, and Rs 1,22,423.92 per kl in Chennai.

ATF prices vary across the country due to differences in state levies.

With the recent surge in jet fuel prices, industry insiders in the aviation sector anticipate higher airfares during this festival season, when travel demand typically rises.