Indigo Scraps Fuel Surcharge, Lowering Airfares by 300-100 Rupees

New Delhi: Air travelers flying with Indigo Airlines on domestic and international routes received a pleasant surprise at the start of the new year.  The airline announced on Thursday the abolishment of its fuel surcharge, effective January 4, 2024.

The decision comes in the wake of recent declines in aviation turbine fuel (ATF) prices.  Indigo implemented the surcharge in October 2023 to offset surging jet fuel costs.  Passengers were charged varying amounts depending on their flight distance, but this additional burden has now been lifted.

"Indigo Airlines is pleased to announce the removal of fuel surcharge effective today across all domestic and international routes," the airline stated in a press release. "This decision follows the recent downward trend in ATF prices."

With the fuel surcharge gone, airfares on Indigo flights are expected to become more affordable. According to a Business Standard report, the initial fuel charge ranged from Rs. 300 to Rs. 1,000 per ticket depending on the flight distance. ATF typically accounts for around 40% of an airline's operating costs.

The price cuts on ATF began on January 1, 2024, with oil marketing companies reducing the cost by 4% in major cities. In Delhi, the price per kiloliter (KL) dropped by Rs. 4,162.50 to Rs. 1,01,993.17 KL. This marks the third consecutive month of jet fuel price reduction since November 2023.

"The recent decline in ATF prices has provided positive relief, and Indigo Airlines is passing this benefit on to its customers in the form of lower fares," the airline stated. "With these cumulative reductions over the past three months, ATF prices have decreased by Rs. 16,206 per KL. Similarly, in other metropolitan cities, prices stand at Rs. 1,10,962.83 KL in Kolkata, Rs. 95,372.43 KL in Mumbai, and Rs. 1,06,042.99 KL in Chennai."