Low-cost carrier IndiGo on Thursday announced the removal of fuel surcharges on all its domestic and international flights, citing a decline in Aviation Turbine Fuel (ATF) prices.
The decision, effective immediately, comes after the airline introduced the fuel charge in October 2023 in response to a series of consecutive ATF price hikes.
“IndiGo is pleased to announce the removal of fuel charge applicable on its on domestic and international routes, effective January 04, 2024. The fuel charge had been introduced in October 2023, following a surge in Aviation Turbine Fuel (ATF) prices,” IndiGo said in a statement.
“With recent reduction in ATF prices, IndiGo is withdrawing the charge,” the airline added.
ATF prices, which had surged in October to Rs 1,18,199.17 per kilolitre, marking a 5.14 per cent increase over the previous month and a 2.32 per cent year-on-year hike, witnessed a subsequent decline of nearly 6 per cent in November 2023.
In the new year, jet fuel prices continued to decrease for the third consecutive month, reaching Rs 1,01,993.17 per kilolitre in Delhi.
IndiGo, the country’s leading airline in terms of market share, had initially communicated that the fuel charges would range from Rs 300 to Rs 1,000, based on the distance traveled. Given that ATF can constitute nearly 40 per cent of an airline's costs, this move is expected to offer significant relief to travelers on low-cost airlines.
"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. IndiGo remains committed to its promise of providing affordable, on-time, courteous, and hassle-free travel for our customers," IndiGo added.
In the quarter ending September 30, IndiGo reported a consolidated net profit of Rs 188.93 crore, with revenue from operations increasing by 19.57 per cent to Rs 14,944 crore compared to the same period the previous year.
Its parent company, InterGlobe Aviation, was trading 0.15 per cent higher at Rs 2997.55 per share on Thursday at around 2 pm.