IndiGo (InterGlobe Aviation Ltd), India’s largest airline, has imposed a fuel surcharge in the range of ₹300-1,000 on airfares due to the steep rise in jet fuel prices, the airline said.
The surcharge will be added to airfares booked from 6 October onwards.
“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,” the airline said.
As jet fuel accounts for a substantial portion of an airline’s operating expenses, it necessitated fare adjustment to address such a cost surge, it added.
Under this pricing structure, passengers booking IndiGo flights will incur a fuel charge based on the sector distance. ATF price accounts for 40% of the ticket price.
A sector of up to 500 kilometres (km) distance will incur a fuel charge of ₹300; ₹400 for 501-1,000 km, ₹550 for 1,001-1,500 km; ₹650 for 1,501-2,500 km; ₹800 for 2,501-3,500 km; and of ₹1,000 for 3,501 km and above.
Earlier this week, the oil marketing companies (OMCs) raised the prices of ATF by around 5% across the four metro cities.
In the national capital, jet fuel now costs ₹1,18,199.17 per kilolitre (kl), up 5.14% from ₹1,12,419.33 last month. Similarly, the price of jet fuel in Kolkata rose 4.65% to ₹1,26,697.08 per kl.
In the key cities of Mumbai and Chennai, jet fuel is now priced at ₹1,10,592.31 and ₹1,22,423.92 per kl, according to data from the OMCs. This is the fourth consecutive increase in jet fuel prices.
The airline, which has over 63% market share in domestic aviation, is currently preparing for a strong quarter.
A spokesperson for IndiGo told Mint this week that the demand surge is expected in the quarter as Indians celebrate Durga Puja and Diwali, visit friends and relatives, return to home towns and travel during the peak wedding season. It also coincides with lengthy Christmas and New Year holidays in many parts of the world.
“Interestingly, in today’s times, we also see a new travel trend emerging. While traditionally, some people prefer to stay home during these festivities, there are now others who prefer to fly to beaches and mountains. In my view, this indicates a change in people’s travel patterns compared to prior times,” the spokesperson added.
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