Fliers to save up to Rs 1,000 as IndiGo 1st to waive fuel charge
The airline, which is expanding its operations, said the fuel charge has been withdrawn with effect from January 4, due to the recent reduction in ATF prices.
IndiGo flight (IANS)
NEW DELHI: The country’s largest airline IndiGo, on Thursday, announced the withdrawal of fuel charge that was collected from passengers, a move that will reduce airfares by up to Rs 1,000 on certain long routes.
In the wake of a spike in jet fuel prices, the airline started levying the fuel charge on each domestic and international ticket from October 6, 2023. The quantum of the fuel charge varied from Rs 300 to up to Rs 1,000 depending on the distance.
The airline, which is expanding its operations, said the fuel charge has been withdrawn with effect from January 4, due to the recent reduction in Aviation Turbine Fuel (ATF) prices.
“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,” it said.
Fuel costs account for a significant chunk of a carrier’s operational costs.
Last year, IndiGo was also the first Indian carrier to announce that they would levy fuel charges to offset the spike in ATF prices.
A fuel charge of Rs 300 was levied from each passenger if the flight distance was up to 500 kilometres and the amount was Rs 400 for a distance of 501-1,000 kilometres. The amount was Rs 1,000 for 3,501 kilometres and above. With the removal of the fuel charge, the overall ticket price for an IndiGo passenger will come down by at least Rs 300 and up to Rs 1,000. Last month, the Civil Aviation Ministry advised airlines to self-regulate and keep passengers’ interests in mind while fixing the fares.
The fuel charge was introduced on October 6, 2023. In November 2023, IndiGo, the country’s largest airline, carried 78.76 lakh passengers as per official data.
Civil aviation minister Jyotiraditya Scindia, last month, informed the Lok Sabha that airfare is neither established nor regulated by the government.
“The fares are fixed by airlines keeping in mind the market, demand, seasonality and other market forces. The airfare increases with the demand for seats as the lower fare buckets get sold out faster and move to higher fare buckets,” he had said.