Airfares to drop as IndiGo becomes the first to remove fuel surcharge

India's largest airline, holding a whopping 61.8% market share, is cutting airfares by removing the added fuel surcharge it slapped on tickets last October due to expensive aviation fuel.

Varnika Thakur

Updated:4th Jan, 2024 at 5:03 PM

The company introduced the charge in October after suffering losses due to the rising price of aviation turbine fuel. Aviation turbine fuel, commonly called Jet fuel, accounts for almost 40% of the total operating cost of an airline.

ATF prices remained high for most of 2023, tracking the increase in crude oil prices, forcing the airline to pass it on to consumers in the form of a surcharge.

ATF prices started going down in November, after rising steadily from July 2023. Last month, ATF prices in Delhi were lowered from 109,966.39 rupees per kl (Rs 109.97 per liter) to 1,01,993.17 rupees per kl.

IndiGo said the removal of fuel charges will have some bearing on the airfares as the move aligns with their objective of providing affordable fares. However, they might bring back the fuel charge in the event of a rise in ATF prices, the company said.

Airfares to drop as IndiGo becomes the first to remove fuel surcharge

India's largest airline, holding a whopping 61.8% market share, is cutting airfares by removing the added fuel surcharge it slapped on tickets last October due to expensive aviation fuel.

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