IndiGo raises fuel surcharge as jet fuel prices climb

Dhaka: Indian low-cost carrier IndiGo has raised the fuel surcharge on its domestic and international flights, citing a sustained rise in aviation turbine fuel (ATF) prices.

The airline said the revised charges would apply to all new bookings made from 12:01 am on October 6. This is the second revision since the airline first introduced the surcharge in March.

Local media reports said ATF accounts for about 40% of an Indian carrier's operating costs. The ongoing conflict in the Middle East, which began in late February when Israel and the US attacked Iran, has significantly disrupted global crude oil supplies.

ATF prices in Delhi have climbed nearly 25% since July, from around INR 110 per liter to INR 137 per liter. October alone saw a 13% increase.

The airline said the latest month-on-month rise has exceeded 14%, pushing ATF costs to among the highest levels in a decade.

On domestic routes, the surcharge will now range from INR 375 to INR 1,300, depending on distance. Under the previous structure introduced in April, it ranged from INR 275 to INR 950.

The charge for flights up to 500 kilometers has increased from INR 275 to INR 375. For 501-1,000 kilometers, it has risen from INR 400 to INR 600.

For 1,001-1,500 kilometers, the charge has increased by 50% to INR 900. The 1,501-2,000 kilometer band now carries INR 1,150, up from INR 800, while flights above 2,000 kilometers will cost INR 1,300, compared with INR 950 earlier.

On international routes, the charge for flights within the South Asian Association for Regional Cooperation (SAARC) region, up to 500 kilometers, will be INR 1,000, up from INR 900. Flights above 500 kilometers will carry INR 3,000, compared with INR 2,500 previously.

The surcharge for Southeast Asia flights up to 2,000 kilometers has risen from INR 3,500 to INR 5,500. Gulf flights will also carry INR 5,500, compared with INR 3,000 earlier.

IndiGo said it had implemented a measured and relatively modest adjustment to limit the impact on passengers. It noted that fully offsetting the fuel cost increase would have required a significantly larger rise.

When it first introduced the surcharge in March, the airline imposed a flat INR 425 on domestic flights. International charges then ranged from INR 425 for the Indian subcontinent to INR 2,300 for Europe.

In April, IndiGo moved domestic flights to a distance-based structure and substantially raised international charges, with rates varying by destination and, in some cases, distance.

The airline said it would continue to monitor the situation and make further adjustments when appropriate.