IndiGo has removed fuel charges on both domestic and international flights, which will be effective from January 4, 2024, as a result of the decline in aviation turbine fuel (ATF) prices. The fuel charge, introduced in October 2023, varied based on distance slabs, ranging from Rs 300 to Rs 1,000 per sector.
IndiGo expressed its satisfaction in announcing the removal of the fuel charge, highlighting the dynamic nature of ATF prices. The airline pledged to continually adjust fares to adapt to any changes in prices or market conditions.
The introduction of the fuel charge coincided with the peak festival travel season and followed four consecutive monthly increases in jet fuel prices, reaching their peak in October 2023. Since then, ATF prices have experienced three consecutive reductions, marking a nearly 14 percent decline.
In October, IndiGo justified the fuel charge by citing the substantial increase in ATF prices, which contribute significantly to an airline’s operating expenses. With ATF accounting for over 40 percent of Indian carriers’ operational costs, adjustments in fares were deemed necessary to address the surge in costs. Passengers booking IndiGo flights were subject to a fuel charge per sector based on the sector distance, according to the carrier’s statement at the time.
ATF prices, deregulated in India, align with global rates. The recent decrease in international crude oil prices, coupled with the global cooling of jet fuel prices, has contributed to this positive change. Presently, ATF is priced at Rs 1,01,993.17 per kilolitre (kl) in Delhi, compared to Rs 1,18,199.17 per kl in October.
