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Passenger Tries to Open Door on IndiGo Flight En Route to Hyderabad
In response to the staggering increase in aviation turbine fuel (ATF) prices over the last three months, IndiGo, one of India’s leading airlines, has announced the imposition of a fuel surcharge of up to ₹1,000 based on the distance traveled.
This move is expected to have a significant impact on passengers, particularly during the peak travel season in India, which traditionally falls between October and December.
ATF expenses account for a substantial portion of the overall costs incurred by Indian airlines, comprising approximately 45% of their total revenue. Between June 1 and October 1, 2023, the price of ATF has surged by a staggering 32.4%, reaching ₹1.18 lakh per kilolitre (kl) in Delhi.
IndiGo’s new fuel charge structure is structured as follows: ₹300 for flights covering distances of up to 500 kilometers (km), ₹400 for flights between 501 and 1,000 km, and for flights exceeding 3,501 km, a fuel charge of ₹1,000 will be applied. It’s worth noting that approximately 60% of the airline’s flights fall within the 0-1,000 km range.
This isn’t the first instance of IndiGo introducing a fuel charge. In May 2018, the airline implemented a similar mechanism to counteract a significant rise in ATF prices. This charge was subsequently rescinded when fuel prices returned to more manageable levels.
IndiGo has confirmed that the fuel charge will be applicable to both domestic and international flights, commencing from midnight on Thursday. The company issued a statement clarifying, “This decision is a response to the significant surge in ATF prices, marked by consecutive monthly increases over the past three months… Under this new pricing structure, passengers booking IndiGo flights will bear a fuel charge based on the distance of their chosen sector.”
It’s important to note that ATF prices in India are revised monthly by state-owned oil companies, including Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd. These revisions take into account the average international price from the preceding month.
