IndiGo removes surcharge after 3 months as aviation fuel prices decline

Airfares in the country are set to fall, with IndiGo on Thursday removing the fuel charge in response to the gradual decline in aviation turbine fuel (ATF) prices in the last three months.

India's biggest airline had on October 5 imposed a fuel surcharge of up to Rs 1,000 based on flight distance. "The fuel charge was introduced in October 2023, following a surge in Aviation Turbine Fuel prices. With recent reduction in ATF prices, IndiGo is withdrawing the charge," said IndiGo.

Since October, the ATF prices have decreased. On October 1, the ATF price in Delhi was Rs 1.182 lakh per kilolitre. It has fallen to Rs 1.012 lakh per kilolitre by January 1.

"As ATF prices are dynamic, we will continue to adjust our fares and components thereof, to respond to any change in prices or market conditions. IndiGo remains committed to its promise of providing affordable, on-time, courteous, and hassle-free travel for our customers," said the airline.

The airline has waived the fuel surcharge for all tickets booked from January 4 onwards. Consequently, if a ticket was booked on any date before January 4 for travel after that date, the surcharge will still be applicable, and no refunds will be provided to such ticket-holders.

ATF costs represent the largest expenditure for Indian carriers, consuming about 45 per cent of their overall revenue.

IndiGo had imposed a fuel charge of Rs 300 for flights covering up to 500 km and Rs 400 for those between 501 and 1,000 km. Such a graded increase had been applied to all flight categories, with those covering distances of 3,501 km and above incurring a fuel charge of Rs 1,000.

State-owned Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd revise ATF prices on the first day of every month on the basis of the average international price in the previous month.