Flying IndiGo gets costlier from October 6
What's the story
IndiGo has announced a hike in fuel charges for its domestic and international flights. The revised rates will come into effect from October 6. The decision comes after a significant increase in aviation turbine fuel (ATF) prices. The hike is the third consecutive monthly increase in ATF costs and has taken the prices to their highest level in a decade.
Cost implications
ATF prices have increased by over 14%
The latest ATF price hike has been a major contributor to IndiGo's decision.
The airline said, "The continuous rise in the fuel prices, with the latest month-on-month increase exceeding 14%, has taken ATF costs to levels that are amongst the highest in the last decade."
This sharp increase is expected to impact airlines' cost structures and network economics.
Charge details
Distance-based charges for domestic flights
IndiGo's revised fuel charges for domestic flights will be distance-based, ranging from ₹375 to ₹1,300 per sector. The airline had last revised these charges in April this year.
For international flights, the revised charges will be region-specific with a fixed charge of ₹1,000 for SAARC routes up to 500km and higher charges for longer routes.
Customer impact
IndiGo acknowledged the burden on customers
IndiGo has acknowledged the burden of these revised fuel charges on its customers.
The airline said, "While offsetting the increase in fuel costs would have required a significantly larger increase in the fuel charges, IndiGo has implemented a measured and relatively modest adjustment to minimize the impact on customers."
This move comes as airlines are under renewed pressure from rising fuel costs.